RealTime IT News

Networking Start-up Launched

Looking to reach the "subscriber edge" of the Internet, start-up guru Wu-Fu Chen joined with former Cisco executives Monday to form Shasta Networks Inc.

The company is aiming to provide gateway services to network service providers. Its services will enable cost-effective deployment of network-based services such as outsourced firewalls, Internet telephony and virtual private networks, the company said.

The company raised $5.65 million in first-round funding from venture capital firms Benchmark Capital and Institutional Venture Partners, both of which are represented on the board.

Heading up the company will be Chen, who has been involved in the startup of eight separate networking firms, including Cascade Communications. He was most recently vice president of technology at Cisco Systems and is joined in the venture by other former Cisco executives.

"It is time to turn our efforts to developing the systems that will enable new network-based services that fully exploit and enhance the value of the IP public network infrastructure and build a profitable business model for service providers," Chen said.

Shasta Network's products are scheduled to enter into extensive customer trials in early 1999.