Thursday, October 9, 2008

Local VCs add to Kineto Wireless’ $15.5M funding

By Mass High Tech Staff

Local venture capital firms Venrock of Cambridge and Oak Investment Partners of Westport, Conn., have teamed with Sutter Hill Ventures, Seapoint Ventures, InterDigital and strategic investor Motorola&t=1">Motorola Inc. to put $15.5 million into California-based fixed-mobile convergence technology maker Kineto Wireless Inc.

Venrock and Oak Investment Partners are repeat investors in the company, which has raised a total of $103 million since its inception in 2001. It is Motorola&t=1">Motorola’s first investment in the company. Kineto received an additional, undisclosed amount of strategic investment from NEC Corp. last month.

Kineto’s technology enables mobile operators to extend voice, data and IMS services over broadband access networks, using the Internet to lower service delivery costs while improving mobile coverage and performance. The company’s gateway and client software is aimed at revenue-generating services, including dual-mode handsets, femtocells and terminal adaptors.

Kineto counts NEC, Motorola&t=1">Motorola, Samsung, LG Electronics, Qualcomm, Texas Instruments, Linksys, Ubiquisys and Netgear among its customers and partners.

Both Venrock and Oak Investment Partners target early stage companies for investment. Venrock’s mobile technology portfolio includes Hellosoft Inc. and ApaceWave Technologies Inc., both of California. Oak Investment Partners’ fixed-mobile convergence investments include Florida-based Airspan Networks Inc.