DTI Raises $17M First Round

Digital Telecommunications Inc. (DTI) of Boca Raton, Fla., recently raised $17 million in its first institutional round of venture financing.

The company develops carrier switches that allow telecommunications companies to deliver voice, video and data over traditional and Internet protocol-based networks.

Advent International of Boston led the Series A round with a $5 million investment, said President Dennis Chateuneuf. AT&T Ventures also contributed $5 million. Advanced Technology Ventures (ATV) and ABN AMRO Inc. invested the balance.

“Our investors will provide us with technical and operational expertise,” Chateuneuf said. “We have a strategy in place that will revolutionize how carriers do switches.”

As part of the deal, Advent Managing Director Andrew Fillat and ATV General Partner Michael Frank will join DTI’s board.

Proceeds from the investment will develop DTI’s next generation of carrier products and expand sales and marketing. Chateuneuf said he expects DTI’s investors to help the company establish an international presence.

“DTI’s architecture is extremely flexible and with its low cost can be sold very effectively,” Frank said. “Competitive local exchange carriers and Internet service providers can easily incorporate its IP technology and the Internet.”

Chateuneuf said DTI will likely pursue additional financing in either the public of private markets once this capital is fully exhausted.