MARCH 15, 2007 -- Capella (search for Capella), provider of wavelength selective switches (search for WSS) for use in reconfigurable optical add/drop multiplexer (search for ROADM) applications, today announced the completion of $20 million of equity and debt financing.Â The round was co-led by Levensohn Venture Partners and Rustic Canyon Partners and included funding from Formative Ventures, as well as participation by existing investors.Â Square1 Bank provided the banking and debt facilities.Â
As part of the transaction, Kip Sheeline from Levensohn Venture Partners and Michael Kim from Rustic Canyon Partners will join Capella's Board of Directors.Â
Capella says it will use the funds to accelerate shipments to existing customers and to expand its product lines to serve additional markets.
"We are excited to add a new group of top-tier investors who share Capella's vision," contends Larry Schwerin, CEO of Capella. "Having their support validates our business model and enables us to meet the high-level of customer demand for our products.Â It is critical that we take advantage of our momentum domestically and internationally by expanding Capella's product family and market opportunities and by further scaling our manufacturing operations at Fabrinet," he says.Â "This capital also enables us to more effectively support our strategic relationship with Furukawa, and to ensure complete customer satisfaction during a period of rapid growth."
"Telecom carriers are in the midst of upgrading their networks to support new IP-based services such as faster broadband networks, video, business Ethernet services, and wireless backhaul," adds Jeffrey Osborne, equity research analyst at CIBC World Markets.Â "We see wavelength selective switches, such as Capella's next-generation technology, being very well positioned to capitalize during this period of network transformation."
Capella will feature a live demonstration of its products at OFC/NFOEC (Booth #3713), to be held March 25-29, 2007, in Anaheim, CA.Â