Core Capital Invests in $20M Round for NextPoint™
New Company Formed by Recently Announced Merger of NexTone Communications, Inc. and Reef Point Systems, Inc. Will Use Investment for Continued Growth
WASHINGTON--(BUSINESS WIRE)--Core Capital Partners, a venture capital firm that has invested in a number communications infrastructure companies particularly focused on the IP and VoIP, announced its participation in a $20 million round of funding for Gaithersburg, MD-based NextPoint™ Networks, Inc. NextPoint will be the result of the recently announced merger between NexTone Communications Inc., a software-centric session border controller and session management provider, and Reef Point Systems, Inc., a mobile access universal convergence gateway provider. NextPoint will use the recent investment to support the merger and continue its strong growth. In addition to Core Capital, other investors in this round include the round lead investor, One Equity Partners, the private equity arm of JP Morgan Chase (NYSE:JPM), as well as American Capital Strategies (NASDAQ:ACAS), Jerusalem Venture Partners, Safeguard Scientifics (NYSE:SFE) and Summerhill Venture Partners.
“Core Capital’s continued support of NexTone through its merger with Reef Point demonstrates the promise of our Integrated Border Gateway solution, which creates significant efficiencies for operators and architects of fixed, mobile and converged networks around the globe”
“NextPoint has incredible potential due to its unprecedented ability to support the IP network evolution and migration plans at both the access and peering points of both mobile and fixed-network providers,” said Pascal Luck, a managing director with Core Capital Partners. “NextPoint provides mobile and fixed-network operators around the world the ability to quickly, securely and profitably deliver voice, data and video services over all IP networks. With the strong, experienced leadership of newly appointed CEO Woody Ritchey, NextPoint is well-positioned for accelerated growth in the emerging fixed-mobile convergence marketplace.”
“Core Capital’s continued support of NexTone through its merger with Reef Point demonstrates the promise of our Integrated Border Gateway solution, which creates significant efficiencies for operators and architects of fixed, mobile and converged networks around the globe,” said Woody Ritchey, chief executive officer of NextPoint. “The IBG will support the acceleration of IP convergence and streamline the design of fixed, mobile and converged networks.”
Core Capital was an early investor in NexTone and has continued to support and provide leadership to the company through participation in its successive rounds of financing and growth. When Core Capital initially invested in the company in 2002, NexTone was just beginning to ship its first product to a few customers. Today, the company has a growing global footprint of more than 550 global service providers.
NextPoint simplifies the deployment of fixed and mobile network connectivity, accelerates the delivery of new services to subscribers and offers high levels of security. Its customers include tier-one mobile operators located all over the globe.
About Core Capital
Core Capital Partners is venture fund headquartered in Washington, DC. The firm currently manages $350 million and provides capital to both early and mid-stage technology ventures. Core focuses on the kinds of “core” or fundamental technologies that enable or enhance information, data, and communications, including consumer Internet and media, and wireless software and services. The firm also invests in infrastructure, logistics, medical technologies and cleantech. To date, Core has backed over 40 companies, working closely with entrepreneurs and management teams to build market-dominating enterprises. To learn more, please visit our website www.core-capital.com.
NextPoint Networks (www.nextpointnetworks.com) is being formed by the merger of NexTone and Reef Point, to deliver global, fixed-mobile convergence (FMC) border platforms and secure interconnectivity solutions. NextPoint's technology platform, products and solution suites will enable mobile and fixed line operators to deliver secure voice, data and multimedia over a scalable platform, interoperating with both fixed-line and mobile network technologies and operating systems. 550 service providers and enterprises worldwide will use NextPoint’s IntelliConnect system to manage technical complexities, optimize business economics, and remove partnership hurdles. NexTone (www.nextone.com) and Reef Point (www.reefpoint.com) signed definitive agreements December 2, 2007, and the transaction is expected to close in early January, so the companies can enter 2008 as one company.