Cradlepoint Secures $89 Million in Series C Funding Led by TCV to Deliver Next Generation Network Solutions for Enterprises Embracing Digital Transformation
Growth-stage Investment to Fuel Cradlepoint’s Continued Growth and Expand Product Initiatives in SDN, 5G Wireless Broadband, and Enterprise IoT
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 1.5 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.”