Although the giddy free-love approach to VC financing may have ended with the mass exodus of dot coms from the marketplace, money is still available to those companies with discerning business models. Many financing rounds have only recently closed, and the figures may surprise.
Sanrise, Mountain View, Calif., a provider of managed storage area networking, has raised $108 million in equity and $40 million in debt in its second round of funding. The round was led by Crosspoint Venture Partners and supported by Comdisco Ventures, Exodus Communications, Morgan Stanley Dean Witter, and others. After raising $13.3 million from Crosspoint in its first round, Sanrise has attracted attention with its plan to reach profitability in 2002--despite a gross burn rate of $4 million per month.
M7 networks, San Diego, a mobile infrastructure hosting company launched on Wednesday, Feb. 21 as it secured a total of $20 million in its first round of funding. Round one comprises a mix of cash, technology and services from a cast including ideaEdge Ventures, Qualcomm, Enterprise Partners and Sienna Holdings. The company, which offers its services to enterprise companies, ASPs and network operators, plans to use the financing for the development and initial rollout of its platform.
The projected tough times for ASPs may have some basis in truth, but many companies in that space are still finding their way to the bank. ASP, Always-On, New York, has just completed its third round of financing for $12 million in equity and $1.5 million in debt financing. The round was co-led by initial investor Star Ventures and new supporter Koor Corporate VC. The financing will be used to expand its global operations and to further develop its platform.
Rough waters still persist in the marketplace, however, as illustrated by Internet commerce and infrastructure company StoreRunner Network, which recently filed for Chapter 11. The San Diego-based company operates the online shopping portal StoreRunner.com. According to a company spokesperson, the move was made as "a voluntary petition for reorganization" and "to prevent risking over $60 million in assets."
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