Boston,MA--Skyhook Wireless, provider of the Wi-Fi Positioning System, announced today it has raised $8.5 million of new financing, bringing total funds raised to $16.8 million. Leading the round was new investor RRE Ventures joined by existing investors Bain Capital, Intel Capital and CommonAngels. Additionally, RREs General Partner Will Porteous will join Skyhook Wireless Board of Directors.
Skyhook Wireless was founded in 2003 to capitalize on the tremendous growth of Wi-Fi usage and the emerging market for location-based services, like navigation, that are among the most demanded new features from mobile device users. Unfortunately, mobile devices lack any location capability or rely on GPS-based systems which struggle in densely populated and indoor environments. Skyhooks Wi-Fi Positioning System (WPS) addresses these issues by offering a software-only positioning system that has the highest indoor availability and the best overall urban reliability. It is the first commercial positioning system that leverages the Wi-Fi infrastructure rather than satellites or cell towers.
With analyst firms such as ABI Research forecasting that in 2011 more than 325 million converged Wi-Fi / cellular phones will be shipped, the market opportunity for Skyhook technology is significant. In the past year, Skyhook has announced deals with AOL, SiRF Technologies, ReignCom, Navteq and TeleAtlas among others.
In our discussions with mobile device manufacturers from music players to cellular phones we found that Wi-Fi integration is a foregone conclusion, said RRE Ventures General Partner Will Porteous. Given the many advantages of Skyhooks Wi-Fi Positioning System and the penetration of Wi-Fi into mobile devices, we believe that Skyhook has an opportunity to be an integral part of every mobile device.
The new capital will be used to expand the Skyhook Wireless coverage network to Europe and Asia. Today, Skyhook covers 70% of the U.S. and Canadian populations. By the end of 2007, Skyhook coverage will include the top 50 European metropolitan areas and the top 15 Asian cities. Skyhook will also continue to expand its software footprint onto newer mobile device platforms. Already this year, the company announced Windows Mobile, Linux and Mac OS X versions of its software.
This new funding allows Skyhook to accelerate international expansion and respond to growing interest from European and Asian markets, said Skyhook Wireless Founder and CEO Ted Morgan. We are excited to have an experienced wireless investor like RRE lead this new round of financing.
About RRE Ventures
Since its founding in 1994, RRE Ventures has been dedicated to helping talented management teams build leading companies in the software, communications, and financial services industries. With $850 million in assets, the firm backs entrepreneurs and management teams that possess the knowledge, vision, and discipline to create market-dominating companies. RREs team offers a unique combination of management, operations, and investment expertise, as well as an unrivaled network of relationships, that has helped build over 90 companies. For more information, visit www.rre.com.
About Bain Capital Ventures
Bain Capital Ventures is the Boston-based venture capital arm of Bain Capital. Founded in 1984, Bain Capital and its affiliates have invested in over 230 companies with such notable successes as DoubleClick, Gartner Group, and Staples. Bain Capital Ventures invests across all stages of a company's growth from providing seed capital through offering late stage growth equity. Bain Capital Ventures and its early stage companies benefit from the broader resources of Bain Capital, including more than 400 investment professionals across North America, Europe, and Asia, $40 billion of assets under management, and the knowledge gained from 20 years of successful venture investing. For more information, visit www.baincapitalventures.com.
About Intel Capital
Intel Capital, Intel's venture capital organization, makes equity investments in innovative technology start-ups and companies worldwide. Intel Capital invests in a broad range of companies offering hardware, software, and services targeting enterprise, home, mobility, health, consumer Internet, semiconductor manufacturing, and cleantech. Since 1991, Intel Capital has invested more than U.S. $6 billion in approximately 1,000 companies in over 40 countries. In that timeframe, about 157 portfolio companies have gone public on various exchanges around the world and another 187 have been acquired by other companies. In 2006, Intel Capital invested about US$1.07 billion in 163 deals with approximately 60 percent of funds (excluding Clearwire) invested outside the United States. For more information on Intel Capital and its differentiated advantages, visit www.intelcapital.com.
Named after the Boston's historic public meeting grounds, CommonAngels is a group of 65 leading private investors and several dozen limited partners in two co-investment funds. Since 1998, CommonAngels has funded 28 companies with over $30 million from CommonAngels and over $100 million from co-investors. www.commonangels.com
About Skyhook Wireless
Founded in 2003, Skyhook Wireless has pioneered the development of the first-ever metro-area positioning system that leverages Wi-Fi rather than satellites or cell towers to deliver precise location data supporting the growing market for location-based services. The Skyhook Wi-Fi Positioning System (WPS) requires no new hardware, works indoors and outdoors, provides an instant location and is more accurate than current technologies in congested downtown areas. WPS serves over 70% of the US & Canadian populations and is expanding internationally. Skyhook Wireless is headquartered in Boston, MA, and is privately held. Investors include RRE Ventures, Bain Capital Ventures, Intel Capital and CommonAngels. For more information visit www.skyhookwireless.com, send email to email@example.com or call 617-314-9802.
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