Boise, Idaho-based Cradlepoint, a provider of cloud-based network solutions for connecting people, places, and things over wired and wireless broadband, has raised $89 million in Series C funding. TCV led the round. In addition to the funding, Ted Coons, a general partner at TCV, and Doug Gilstrap, a venture partner at TCV, have been added to Cradlepoint’s board of directors.
BOISE, Idaho – March 9, 2017 – Cradlepoint, the global leader in cloud-based network solutions for connecting people, places, and things over wired and wireless broadband, today announced it has closed $89 million in Series C funding. The round was led by TCV, a leading provider of capital to growth-stage private and public companies in the technology industry. Cradlepoint will use these funds to drive continued growth and further capitalize on the disruption in the enterprise wide area networking market as the result of Digital Transformation (the digitization of every business process and interaction). This includes expanding product initiatives in Software-Defined Networking (SDN), advanced 4G and 5G wireless connectivity, and enterprise Internet of Things (IoT).
In connection with the financing, Ted Coons, General Partner at TCV, and Doug Gilstrap, Venture Partner at TCV, have joined Cradlepoint’s board of directors.
The Cradlepoint investment continues TCV’s legacy of investing in sector-leading companies, such as Netflix, GoDaddy, ExactTarget, Redback Networks, and Splunk. With over 15,000 customers and 1.4 million units deployed to date worldwide, and having achieved an over 40 percent compound aggregate growth rate (CAGR) for the last three years, Cradlepoint is the leading provider of 4G LTE network solutions for enterprises, governments, and mobile operators. The company’s diverse customer base includes 50 percent of Fortune 100, 75 percent of the world’s top retailers, and 25 of the largest US cities.
“Cradlepoint has established a strong foundation as the leader in cloud-managed 4G LTE network solutions,” said George Mulhern, CEO of Cradlepoint. “The investment by TCV, and their experience in guiding disruptive companies, will allow us to build on this foundation to capitalize on the opportunity in front of us as digital transformation drives WAN transformation. SDN, 4G/5G wireless broadband, mobile networking and IoT technologies will all play a pivotal role in the new connected enterprise, and we are well-positioned to lead the way.”
Digital transformation is accelerating cloud, mobile and IoT adoption — giving rise to the Connected Enterprise, putting greater emphasis on the wide area network (WAN). According to a report by IDC, the burgeoning market for SDN in the WAN (SD-WAN) is projected to reach $12.5 billion by 2020, spurred on by the need for more agile, automated and available networks and a direct result of digital transformation.
“With roots in enterprise-grade 4G LTE, hardware solutions that span branch, vehicle and IoT use cases, integrated with powerful software that enables remote management and network control, Cradlepoint has the technology and momentum to be a major player in the next generation of enterprise WANs,” stated Ted Coons, General Partner at TCV. “A clear technological advantage combined with market leadership and the ability to innovate are key attributes of companies that we choose to partner with, and we are delighted to support the Cradlepoint team as they continue on their growth path.”
“By 2020, the number of people, vehicles, and things connected to the enterprise network will start to dwarf fixed branch sites,” stated Eric Hanselman, chief analyst at 451 Research. “This dramatic shift in the volume and variety of connections will force the enterprise WAN to become more cloud-orchestrated, software-defined, and wirelessly connected and has already started to usher in an entirely new network security model. With this investment by TCV, Cradlepoint now has the potential to become a major player in wide-area networking for the connected enterprise.”
Cradlepoint is the global leader in cloud-based network solutions for connecting people, places, and things over wired and wireless broadband. Cradlepoint NetCloud is a software and services platform that extends the company’s 4G LTE-enabled multi-function routers and ruggedized M2M/IoT gateways with cloud-based management and software-defined network services. With Cradlepoint, customers can leverage the speed and economics of wired and wireless Internet broadband for branch, failover, mobile, and IoT networks while maintaining end-to-end visibility, security, and control. Over 15,000 enterprise and government organizations around the world — including 75 percent of the world’s top retailers, 50 percent of the Fortune 100, and 25 of the largest U.S. cities — rely on Cradlepoint to keep critical sites, workforces, vehicles, and devices always connected and protected. Major service providers use Cradlepoint network solutions as the foundation for innovative managed service offerings. Founded in 2006, Cradlepoint is a privately held company headquartered in Boise, Idaho, with development centers in Silicon Valley and Kelowna, Canada, and offices in the UK, Australia, and Japan. Learn more at cradlepoint.com or follow us on Twitter @cradlepoint.
Founded in 1995, TCV provides capital to growth-stage private and public companies in the technology industry. TCV has invested over $9 billion in leading technology companies and has helped guide CEOs through more than 100 IPOs and strategic acquisitions.
TCV investments include Altiris, Dollar Shave Club, ExactTarget, Expedia, Facebook, Fandango, GoDaddy, Genesys Software, HomeAway, Merkle, Netflix, Redback Networks, Rent the Runway, Sitecore, Splunk, Spotify, VICE Media, and Zillow. TCV is headquartered in Palo Alto, California, with offices in New York and London. For more information about TCV, including a complete list of TCV investments, please visit http://www.tcv.com.