TYSONS CORNER, Va.--(BUSINESS WIRE)--Gigstreem, a leading national provider of high-quality residential and commercial broadband networks, today announced that it has raised $59 million in funding. The $59 million was raised in two separate transactions in Q1’23, with all proceeds coming from Gigstreem’s existing investor base. The first transaction, which raised $19 million for Gigstreem, was led by Crestline Investors, Inc. (“Crestline”) and included participation from real estate technology venture capital firm RET Ventures and multifamily industry leaders Essex Property Trust and UDR, Inc. (“UDR”); capital from this raise will help Gigstreem more rapidly scale its growth and deploy internet services to markets across the country. Crestline led an additional $40 million raise in March 2023 to provide Gigstreem with the strategic capital to pursue acquisition opportunities.
A significant portion of the capital raised in the second round was used to complete the acquisition of a majority of assets from GigaMonster Networks, an Atlanta-based residential and commercial internet provider. The acquisition will accelerate the expansion of Gigstreem's national footprint, more than doubling the number of assets utilizing the company’s technology, while further growing the team and expanding local customer support and engineering capabilities.
Since its launch in 2017, Gigstreem has served as a premier internet service provider (ISP) for apartment buildings, residential communities, businesses and events from coast to coast. In multifamily properties, Gigstreem offers a superior internet experience by eliminating the need for residents to coordinate with local internet service providers, purchase a router, install it, etc. Gigstreem’s hassle-free solution allows residents to enjoy a private network that is up and running within minutes and offers them fast and reliable connectivity anywhere on the property. Property-wide connectivity also benefits real estate operators by enabling smart devices and other technologies that further enhance resident experience and ultimately the value of their property.
"Over the past few years, the limitations of traditional ISPs have become apparent, and this funding and strategic acquisition position us to continue scaling our superior service,” said Andrew Kusminsky, CEO of Gigstreem. “For years GigaMonster has been a formidable force in the industry boasting a phenomenal base of owner relationships, and we are thrilled to capitalize on this opportunity to acquire many of their marquee assets across the country. Our goal is to become the leading provider of ubiquitous, community-wide Wi-Fi in the United States, and this transaction brings us another step closer to achieving that goal."
With over 100 new properties onboarded through the strategic acquisition, Gigstreem now services a total of 52,000 apartment units spanning 28 markets nationwide, and the platform plans to launch operations in some 40,000 additional apartments in 2023. Additionally, in securing a significant portion of Gigamonster’s assets and subscribers, Gigstreem will expand its presence into 6 new markets while increasing its market share in several existing markets, including Texas, Florida, California, Washington, and Georgia. The integration of these assets with Gigstreem’s purpose-built network and dedicated team will further strengthen the Gigstreem footprint and ensure better service to all its subscribers.
“Providing our residents with integral services like reliable, ubiquitous WiFi greatly enhances their living experience and serves as a foundational component to the functionality of numerous community features we offer,” said Josh Gampp, Senior Vice President and Chief Technology Officer of UDR. “Equipping communities with consistent, uninterrupted service is a benefit to both residents and our property management teams and gives us a competitive advantage in today’s market. Gigstreem has the engineering capabilities and ability to scale to ensure UDR communities get the best internet connectivity possible.”
This transaction comes on the heels of several other significant corporate developments at Gigstreem. In August 2022, the firm announced the acquisition of Boston-based residential and commercial internet provider netBlazr, which immediately propelled Gigstreem to a position as a leading ISP for apartment owners and managers in the Greater Boston area. Last year, the firm also entered the Seattle, San Francisco, and Dallas markets, making significant strides in its corporate goal of offering high-speed WiFi in residential communities across the country.
Gigstreem provides the most reliable, fastest Internet service on the market, with premier customer service. Gigstreem's state-of-the-art national network serves tens of thousands of businesses and residences in apartment communities nationally. Companies of all sizes rely on Gigstreem to provide the best streaming experience to their residents and users. For more information, visit gigstreem.com.
About Crestline Investors, Inc.
Crestline Investors, Inc., founded in 1997 and based in Fort Worth, Texas, is an institutional alternative investment management firm. Crestline specializes in opportunistic and credit investments, including financing and restructuring solutions for mature private equity funds. In addition, the firm manages a multi-PM equity market-neutral hedge fund, and provides beta and hedging solutions for institutional clients. Headquartered in Fort Worth, Texas, the company maintains affiliate offices in London, New York City, Toronto and Tokyo. For more information, please visit www.crestlineinvestors.com.
About RET Ventures
A leading real estate technology venture capital firm, RET Ventures elevates real estate innovation by investing in cutting-edge technologies out of its core venture funds and a Housing Impact Fund. RET works in partnership with its base of more than 40 Strategic Investors who own and manage over $600 billion of real estate assets, with a particular focus on multifamily and single-family rental real estate. In these asset classes, the group includes some of the largest REITs and private real estate owners, operators and developers, who together control approximately 2.5 million rental units.
Through its deep expertise and network, RET has created a unique real estate innovation ecosystem that delivers significant value to the companies it backs, providing them with access to thought leaders, development partners and ongoing strategic guidance. For more information, please visit www.ret.vc.