Battery Ventures Leads $100M Equity Investment in Pocket Communications

WALTHAM, Mass. & MENLO PARK, Calif.--(BUSINESS WIRE)--Battery Ventures, a venture capital and private equity firm investing in technology and innovation worldwide, today announced that it led a $100M equity investment in Pocket Communications Northeast, a provider of flat rate, unlimited use wireless voice and data services. Pocket CEO Paul Posner and Charles River Ventures also participated in this financing. Pocket Communications currently operates in Texas and will use this financing to establish and launch Pocket Northeast, which will provide flat rate, unlimited use wireless services in Northeast Corridor markets including Hartford and New Haven, CT, Springfield and Pittsfield, MA, and Poughkeepsie, NY.

“We’re pleased to have secured this equity financing in what is clearly a challenging financing market,” said Paul Posner, President & CEO of Pocket Communications. “Our investors recognize the compelling opportunity offered by an affordable, flat rate, unlimited use wireless service and are confident based on our execution to-date that we will build out the network quickly and keep customers in our target markets satisfied.”

In conjunction with the financing, Battery Partner Matt Niehaus and Charles River Ventures General Partner Jon Auerbach join Pocket Northeast’s board of directors. Bank Street Group served as exclusive financial advisor and placement agent in connection with the financing.

“Pocket is really changing the unlimited wireless game, which has been successful against legacy wireless providers but mostly limited to single market footprints for many years,” said Matt Niehaus, Partner, Battery Ventures. “With the Pocket Northeast launch, the company will push beyond the norm and establish a broad footprint unlimited use network, serving consumers and business users across multiple markets. It’s an ambitious plan, and we believe the company has the right ingredients to be successful: a smart strategy, a sound operating model, an experienced management team, and a tremendous opportunity to expand the market for flat rate unlimited wireless.”

“We are pleased to have been able to match a visionary company with a tenacious focus on execution with two of the most capable communications private equity investors in the business,” said Richard S. Lukaj, Senior Managing Director at Bank Street.

About Pocket

Pocket Wireless offers a flat rate service which allows customers to place and receive unlimited wireless calls within a local service area for a flat monthly fee without the burden of the one or two year contract typically required by traditional wireless companies. Pocket Wireless’ parent company, Pocket Communications, debuted in Texas in 2005, and is Texas’ fastest-growing flat-rate wireless company, with more than a quarter of a million subscribers. For more information, please visit www.pocket.com.

About Battery Ventures

Since 1983, Battery has been investing in technology and innovation worldwide. The firm partners with entrepreneurs and management teams across technology sectors, geographies and stages of a company’s life, from start-up and expansion financing, to growth equity and buyouts. Battery has supported many breakthrough companies around the world. From offices in Boston, Silicon Valley and Israel, Battery currently manages nearly $3B in committed capital. For more information, visit www.battery.com.

About Charles River Ventures

Founded in 1970, Charles River Ventures (CRV) is one of the nation’s oldest and most successful early-stage venture capital firms with approximately $2.1 billion presently under management. CRV is dedicated to helping exceptional entrepreneurs turn their ideas into the next category leaders in high growth technology and media sectors. Over the past 10 years, CRV funds have been ranked among the industry’s top performers. CRV has offices in Boston, MA and Menlo Park, CA. For more information, visit www.crv.com.

About Bank Street

Bank Street is a private investment banking firm providing a comprehensive array of financial advisory services. Our senior professionals have originated, structured and executed more than $250 billion of financial and strategic transactions and are dedicated to bringing the breadth and depth of this experience to bear to the benefit of our clients. With a portfolio of capabilities that includes Financial Advisory, Mergers & Acquisitions, Private Placements of Debt & Equity, Restructuring & Turnaround Advisory, Valuation and Fairness Opinions, Bank Street offers a full complement of services for our corporate and institutional clients. For more information, visit www.bankstreetgroup.com.