MORRISVILLE, N.C. — Overture Networks, a developer of converged packet access platforms for digital networks, has landed $7.5 million in new financing.
Telecommunications Development Fund led the third round of funding. The Washington D.C.-based firm is a new investor in Overture. Another new investor joining the round was Legend Ventures.
Also participating in the round were Durham-based Intersouth Partners, Morgenthaler Ventures, Armada Ventures and Gray Ventures. All had already invested in Overture.
Overture has now raised $31.5 million. The company expects to reach cash-flow breakeven status by mid-2007. Overture was launched in 2000.
At the Council for Entrepreneurial Development’s recent venture capital conference, Overture said it was seeking between $6-8 million.
The new funds will be using for market expansion efforts as well as customer support, the company said.
“This investment in Overture Networks is a tremendous endorsement of our business performance and our position in this growing industry, especially considering today’s competitive business environment,” said Jeff Reedy, chief executive officer of Overture Networks, in a statement. “The capital infusion will allow us to accelerate the deployment of our industry-leading multi-service access platforms to new markets and to new service providers looking for to a cost- effective method to add managed Ethernet services over any underlying infrastructure.”
Reedy is a co-founder of the company along with Prayson Pate, who is the firm’s vice president of engineering.
Overture has more than 60 customers and is growing revenues by double digits on a quarterly basis.
“Based on many conversations with their customers and partners, it is apparent that Overture Networks’ market sense, positioning and execution are excellent,” said Jim Pastoriza, managing partner of TDF. “In just a few short years, Overture Networks has built a solid customer base with top-tier carriers and I look forward to helping them expand into new opportunities.”
Overture helps network providers, such as telecommunications firms, deploy additional services utilizing Ethernet and time division multiplexing (TDM) technology. Carriers can use both fiber and existing copper infrastructure.
Overture Networks: www.overturenetworks.com