Capella nabs $15 million in VC funding

JANUARY 28, 2008 -- Capella representatives say the $15 million in new capital will be used to expand and strengthen its presence in the ROADM market.

JANUARY 28, 2008 -- Capella Intelligent Subsystems (search for Capella), provider of wavelength selective switches (search for WSS) for use in reconfigurable optical add/drop multiplexer (ROADM) applications, has closed $15 million in equity financing, led by the Lucas Venture Group. Existing investors Levensohn Venture Partners, Rustic Canyon Partners, and Formative Ventures participated fully.

The company says the $15 million in new capital will be used to expand and strengthen its presence in the ROADM (search for ROADM) market, which is expected to grow to $2.8 billion over the next four years, according to the most recent Needham investment analysis report. New product offerings and operational improvements are Capella's key focus in the coming months, as the company expands to meet growing market demand, confirm company representatives.

"We are in the midst of global network transformation driven by consumer services such as video, music, and social networking," notes Larry Schwerin, president and CEO of Capella. "Capella is well-positioned as a key enabler in broadband IP content distribution. As companies upgrade their networks to support IP-based consumer services, Capella's technology will be critical," he contends. "Networks need to deliver quality broadband services at a price consumers will pay, and Capella provides the industry-leading solution to enable their customers to build cost-effective, flexible networks."

"We have been pleased with the progress of Capella, and this financing reflects the strength of its market position and technology platform," adds Michael Kim, partner at Rustic Canyon Partners. "We have great confidence in the management team and technology, and look forward to seeing how Capella positively impacts this IP evolution."

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