Vancouver, May 24, 2006 - Zeugma Systems Inc., a venture-backed company developing a telecommunications system for next generation, high speed broadband networks, today announced completion of a US$13.5 million financing.
The financing was led by new investor San Francisco-based Granite Ventures and syndicated by Ventures West and Yaletown Venture Partners, both founding institutional investors, as well as by GrowthWorks Capital Ltd., manager of the Working Opportunity Fund and by company insiders. The new funding will be used to continue with development of the company's first commercial system release, including hardware, software and early customer trials, as well as to ramp the company's sales and marketing capabilities.
The outside members of the board of directors are now Sam Kingsland, Managing Director, Granite Ventures; Sam Znaimer, Senior Vice President, Ventures West; Mike Satterfield, Founding Partner, Yaletown Venture Partners; John DuBois, independent director and former head of North American ILEC sales at Redback Networks.
"Zeugma has assembled an excellent team of industry veterans and technical experts" said Sam Kingsland of Granite Ventures. "They have a clear product vision for next-generation broadband networks, and they are well positioned as carriers around the world upgrade their broadband networks to enable triple-play services."
"Since the Company's seed financing in September 2004, Zeugma has made terrific progress honing its product definition, gathering strategic partner support, and building the team. This financing provides the fuel required to take Zeugma to the market" added Sam Znaimer of Ventures West.
Zeugma Systems is led by Andrew Harries, co-founder, President and CEO, co-founder of Sierra Wireless Inc. and formerly at Motorola, Siegfried Luft, founder, CTO and formerly a co-founder of Siara Systems, which merged with Redback Networks, Jeff Dillabough, Vice President of Engineering and formerly Director of Product Development at PMC-Sierra and HP and Tom Meehan, who was previously Director of Product Management at Redback Networks and at Wellfleet/Bay Networks/Nortel. The company's plans remain confidential as it moves towards its first commercial release.
"We are delighted to welcome our investment partners to Zeugma" said Andrew Harries, President and CEO. "We have longstanding relationships with each of them and have the utmost respect for their strategic foresight which will be extremely helpful as we build this business together. The rate of investment in broadband systems innovation lags the accelerated rate at which new networks are being built and this represents a major opportunity for the company".
About Zeugma Systems
Zeugma Systems Inc. is a venture-backed company developing intelligent solutions for next generation broadband networks. The company has attracted a strong team of industry professionals from companies such as Sierra Wireless, Redback Networks, PMC-Sierra, Cisco Systems, Nortel Networks as well as a number of domain relevant startups.
About Granite Ventures
Granite Ventures has been helping early-stage technology companies build solid foundations for success since 1992. They focus their investments in the communications and software sectors where their partners have deep domain expertise, broad industry knowledge, and significant investment experience. Granite has managed over $700 million in venture capital and has invested in more than 80 private companies. They partner with promising and successful entrepreneurs to create businesses that have a competitive edge, and help those businesses achieve category leadership. More information can be found at www.granitevc.com.
About Ventures West
Ventures West Management Inc., a private venture capital investment group, is one of Canada's leading investors in early stage technology companies. Since its founding in 1968, Ventures West has formed eight venture capital funds which total over $700 million and has invested in more than 130 companies. Ventures West has the people, the expertise, and the capital to help entrepreneurs develop emerging technology companies into market leaders. For more information, visit www.ventureswest.com.
About GrowthWorks
GrowthWorks (www.growthworks.ca) is a recognized leader in venture capital fund management with proven experience in the raising and managing of capital. GrowthWorksTM managed funds, including the Working Opportunity Fund, GrowthWorks Canadian Fund, GrowthWorks Commercialization Fund, and GrowthWorks Atlantic Venture Fund, have approximately $800 million in combined assets. GrowthWorks has a team of skilled and knowledgeable investment professionals with a combined 200 years of experience. The Investment team has a proven track record of identifying, analyzing and structuring investments in emerging sectors. GrowthWorks is a registered trademark of GrowthWorks Capital Ltd.
About Yaletown Venture Partners
Based in Vancouver, British Columbia, Yaletown Venture Partners invests time, expertise, and money in seed and early-stage technology companies. Yaletown focuses on Western Canada's vibrant Information Technology and Energy Technology clusters. Yaletown's investment managers bring a combined seventy years of early-stage company building and financing experience to each portfolio company. For more information, visit www.yaletown.com.
For further information email: or call 604 247 3252.