One round of financing may be all it takes for Newton, Mass.-based broadband firm Sockeye Networks Inc. to score big. At least that’s the thinking of Alan Spoon, a managing partner at Polaris Ventures, which recently co-led Sockeye’s $28 million Series A venture capital round alongside Baker Capital and Battery Ventures.
Spoon, whose firm also pumped money into former Sockeye parent company Akamai Networks, said the issuer is already seeing revenue and should have no need for additional capital.
Proceeds from the round will be used for sales and marketing, as well as customer support and technology development.
Sockeye, which provides real-time data on global Internet conditions with local IP traffic information, expects to release its flagship product by the fourth quarter of this year, and is currently in trial operations with broadband services provider Focal Communications.
The firm was originally developed by Akamai in January under the name Arriva! Networks.
Valeri Marks, the newly named chairman and chief executive of Sockeye, said the initial idea for the spin-off came from Akamai customers. She added that a separate company was developed because Sockeye’s services are not core to Akamai’s business.
Akamai still owns approximately 40% of the newly launched company and enjoys an exclusive relationship with Sockeye.
In addition to Polaris, Baker and Battery, CSFB Private Equity also participated on the first round funding. As part of the transaction, Polaris’ Spoon and Baker Capital’s Simon Lee received Sockeye board seats. Other new Sockeye board members include George Conrades, chairman and chief executive at Akamai, and Avi Freedman, vice president of network architecture at Akamai.
Contact Danielle Fugazy: Danielle.Fugazy@tfn.com