Unified solutions provider BroadStreet Communications Thursday received $62 million equity investment infusion from Frontenac Company, Boston Ventures, Catalyst Investors and its founding management team.
BroadStreet intends to put the money to work launching its broadband technology platform which will deliver an integrated suite of business communication services including local and long-distance voice, high-speed data, Internet, and application services, beginning with unified messaging.
Randy Fowler, BroadStreet chief executive officer and co-founder, said the investment is a seal of approval for its enterprise-targeting business plan.
“We are very pleased with the quality and reputation of our financial partners and view the extent of their equity participation as a strong endorsement of our leadership team and business plan,” Fowler said.
Paul Carbery, Frontenac general partner, said the BroadStreet venture offered the investment firm an interesting opportunity to support unified messaging companies.
“The combination of an industry proven executive team and a compelling market opportunity makes BroadStreet very attractive,” Carbery said. “In Frontenac we have the added benefit of their experience and track record, backing other success stories in our business sector.”
BroadStreet utilizes digital subscriber line technology to deliver last mile connectivity for its clients, mainly comprised of small and medium businesses in underserved markets. BroadStreet sells and supports its services through a direct customer relationship business model.
Tom Cady, BroadStreet chief operating officer and co-founder, said the firm is poised to serve small and medium companies embracing new technologies to grow their business.
We see a great opportunity to bundle a suite of practical, reliable and affordable communication and application solutions,” Cady said. “With the desire to leverage the Internet and the myriad of new and advanced communication offerings, there is a real opportunity for BroadStreet to help small and medium businesses make sense of it all with practical solutions and consultative support, packaged in a one-stop shopping experience.”
BroadStreet is assembling a team to set-up operations and launch its services to initial markets this year. The firm intends to expand its network in 2001 and is currently in the process of vendor selections to build the system.