A coup for Equipe
ATM/MPLS switch start-up attracts funding, interest from Ciena.
 
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Core ATM/Multi-protocol Label Switching switch maker Equipe Communications last week landed $40 million in its third round of funding, perhaps another indication that the industry is about to make a comeback.
Millions in new venture funding has recently been bestowed on existing start-up companies in anticipation of carrier demand and spending picking up for core and long-haul equipment. Core router start-ups Caspian Networks and Pluris recently landed $120 million and $53 million, respectively, and Innovance Networks, a maker of optical switches for the long-haul, bagged $55 million.
In the metro core, Polaris Networks just netted $52 million in second-round funding.
Equipe's third round was led by new investor Sequoia Capital Partners, and includes another new investor, Silicon Valley BancVentures, as well as existing investors Matrix Partners, North Bridge Venture Partners, Battery Ventures, Pequot Capital Partners and Worldview Technology Partners. The most intriguing new investor in Equipe's third round - and another indication that carriers will soon resume spending - is optical powerhouse Ciena.
In addition to investing an undisclosed amount in Equipe - sources say it's between $2 million and $5 million but Ciena would not confirm this - Ciena will exchange "technical and strategic information" with Equipe. Neither company would elaborate on just what this means, but sources say at the very least they'll cross reference each other's products into joint incumbent local exchange carrier and interexchange carrier customers.
"We haven't discussed how we will use it," a Ciena spokesman says, referring to Equipe's technology. "We're not willing to talk about that right now."
The spokesman adds that Equipe "has a real good understanding of what customers are looking for in that [multiservice core switch] market. We're always looking for a way to broaden our customer base."
To date, Equipe has raised $103 million since its founding in 2000. Equipe recently reduced staff in anticipation of the third round of funding.
RELATED LINKS
Multiservice start-ups Equipe, WaveSmith make progress
The Edge, 03/18/02
Equipe cuts staff again
The Edge, 03/05/02
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A haul in for the long-haul
The Edge, 03/04/02
Contact Edge Managing Editor Jim Duffy
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