May 22–CHELMSFORD, Mass.–Computer networking startup Acopia Networks Inc. has landed $30 million in its second round of venture capital funding.
The 16-month-old company, which is set to release its first product next month, will use the cash to ramp up sales and marketing efforts, company officials said. It had been running on $10 million from its angel round of venture capital.
“We intend to see sales this year, and it’ll probably be 18 to 24 months of revenue ramping up before we achieve profitability,” said Brendon Howe, vice president of marketing and business development.
Headquarted at 285 Mill Road, the roughly 65-employee Acopia has no sales yet, but hopes its so-called adaptive resource switch appeals to a wide variety of financial institutions, manufacturing and technology companies.
Company officials would not discuss details about the product until its release. But, Howe noted, the product will connect servers and data storage systems more efficiently than those already on the market.
The company will likely increase its sales force by about 10 percent over the coming eight months, as it pushes its new product but revenue amounts will ultimately determine how large the work force is, Howe added.
The new venture capital was derived from STAR Ventures and St. Paul Venture Capital, Charles River Ventures, Accel Partners and Cheng Wu, the company’s chairman. A partner of STAR, Rami Kasterstein, was also appointed to the company’s board of directors in connection with the deal.
“Securing $30 million in today’s challenging fund-raising climate validates Acopia’s vision and market potential,” president and CEO Christopher P. Lynch, said in a statement. Lynch held a similar post with ArrowPoint Communications, an Acton-based networking startup that was sold to Cisco Systems for an astounding $5.7 billion in stock three years ago.
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