Oversubscribed Funding Round to Help Extend Quantenna's Technology and Market Leadership in Ultra-Reliable Video-over-Wi-Fi
FREMONT, Calif. and MOSCOW – April 17, 2012 – Quantenna Communications, Inc., the leader in ultra-reliable Wi-Fi video networking for whole-home entertainment, announced today that it has closed a $79 million funding round led by new lead investor RUSNANO, with participation by a second new investor Bright Capital. All existing major investors, Sequoia Capital, DAG Ventures, Grazia Equity, Sigma Partners, Southern Cross Venture Partners and Venrock Associates have also participated in the financing. RUSNANO will invest up to $40 million and Sequoia Capital Growth Fund will contribute $20 million.
Quantenna is experiencing insatiable demand for its disruptive Wi-Fi chipsets that offer the industry’s highest performance and coverage while providing wire-like reliability for wireless video content distribution around the home and other demanding applications. According to market research firm Gartner, Wi-Fi-enabled device shipments will grow from less than 1 billion units in 2010 to more than 3 billion in 2015,*making Wi-Fi one of the most influential wireless technologies in the years to come. According to Cisco’s 2011 Visual Networking Index Forecast, video alone is expected to reach about 90% of global traffic. Video services have become a primary revenue source for carriers worldwide, and demand continues to grow at an unprecedented pace for video content delivery from emerging over-the-top (OTT) service providers. Quantenna’s 4x4 MIMO chipsets represent the only commercially available solution for ultra-high reliability, carrier-grade video distribution in both managed and OTT architectures.
RUSNANO’s investment will leverage synergies between Quantenna’s portfolio and a number of nanotechnology initiatives that are underway at RUSNANO, whose mission is to develop the Russian nanotechnology industry through a variety of co-investment opportunities. Quantenna designs its products utilizing the latest semiconductor process technology, and is pursuing 40- and 28-nanometer process for its next-generation products. RUSNANO Managing Director George Kolpachev will become a member of Quantenna’s board of directors, and RUSNANO investment manager Vladislav Tropko will become a board observer. Quantenna will open a Russian subsidiary.
“We are very excited to be joining Quantenna investors and to lead this funding round,” said George Kolpachev. “Quantenna has done more than any other company in the world to unleash the technical potential of Wi-Fi by pioneering 4x4 solutions. This investment, along with our collaboration on a subsidiary entity in Russia, will help expand the role that Russia’s science and engineering schools are playing in the development of world-class solutions for the rapidly growing wireless equipment segment.”
“Sequoia Capital is pleased to be a returning investor in this funding round with a significant investment through our Sequoia Growth Fund,” added Mike Goguen, Managing Partner, Sequoia Capital. “We believe Quantenna is entering a new phase of hyper revenue growth.”
Quantenna’s funding will be used to expand its engineering and service organizations in order to support the rapidly growing list of service providers deploying its 4x4 MIMO 802.11n chipsets worldwide. Quantenna’s chipsets have already been integrated into products for service providers and retail applications from leading companies such as AirTies, Amper, Datasat Technologies, Gemtek, Motorola, Netgear, Sagemcom, Sigma Designs, Swisscom, Technicolor and Telefónica. A number of other new domestic and international service providers are planning to deploy Quantenna 4x4 MIMO chipsets for video distribution applications. Quantenna will also use the funding to accelerate new product development as it enters new market segments.
“Successful deployment of wireless Internet-enabled TVs, video game consoles and set-top boxes demands that multiple high-definition video streams can be distributed to any point in the home with ultra-high reliability and performance at full, 1080p resolution” said Enrique Blanco, Chief Technology Officer, Telefonica. “This requires 802.11n at 5GHz technology with the right feature set for delivering the optimum subscriber experience.”
“In this fast-growing market space, our technology continues to be the leading choice among service providers for ultra-reliable wireless video distribution anywhere in the home,” added Dr. Sam Heidari, Chief Executive Officer, Quantenna. “Our video-over-Wi-Fi chipsets are on their way to penetrating new markets this year beyond the service provider segment. The round also enables us to expand our presence in Russia with the addition of a team of highly qualified specialists.”
“One of the key drivers in the service provider market is long-reach reliability, which requires a combination of technologies such as MIMO and beamforming. Service providers are embracing these solutions because of their ability to deliver the necessary performance and reliability at any corner of the home without costly maintenance calls or support. Also poised for growth in the retail networking market is 802.11ac, which delivers increased speed, capacity, coverage and battery life,” confirmed Craig Mathias, Principal, Farpoint Group.
About Quantenna Communications, Inc.
Quantenna Communications, Inc. is a fabless semiconductor company developing standards-based 802.11n and 802.11ac MIMO chipsets that deliver the highest levels of performance, speed and reliability for wireless networks and devices. Headquartered in Fremont, Calif., Quantenna has assembled a management and engineering team with a long track record of start-up success, and is backed by leading venture capital firms, including Sequoia Capital, Venrock, Sigma Partners, Southern Cross Venture Partners, DAG Ventures, Swisscom Ventures, Grazia Equity, and Telefónica Digital. For additional information, please visit www.quantenna.com.
RUSNANO was founded in March 2011 as an open joint stock company through reorganization of state corporation Russian Corporation of Nanotechnologies. RUSNANO's mission is to develop the Russian nanotechnology industry through co-investment in nanotechnology projects with substantial economic potential or social benefit. The Government of the Russian Federation owns 100 percent of the shares in RUSNANO. Anatoly Chubais is CEO and chairman of the Executive Board of RUSNANO.
Work to establish nanotechnology infrastructure and training for nanotechnology specialists, formerly conducted by the Russian Corporation of Nanotechnologies, has been entrusted to the Fund for Infrastructure and Educational Programs, a non-commercial fund also established through reorganization of the Russian Corporation of Nanotechnologies. For more information, please visit the company’s website at www.rusnano.com.
*Gartner, Inc., Market Trends: Future Platforms for Wi-Fi Growth, 2011-2015, Mark Hung, June 29, 2011.