BigBand Networks raises $27 million, company valuation down from last round

BigBand Networks has raised $27 million in its third financing round at $60 million estimated post-money value, $40 million less than the value in its previous round.

The company provides broadband infrastructure systems for TV broadcasts and advanced services. The company develops communications solutions that improve the ability of broadband network providers to provide advanced multimedia services. Its flagship product is a multimedia router, the first of its kind, which can simultaneously handle video broadcasts, audio and data.

The round was led by Charles River Ventures, and included Lauder Partners and CommVest. Existing investors chipped in too: Cedar venture capital fund, Pilot House Ventures, Redpoint Ventures, and Evergreen Canada Israel Investments.

The proceeds will allow BigBand to expand marketing and sales activity and improve the capability of its Broadband Multimedia-Service Router solutions.

The company recently announced that after just two quarters of sales activity, its routers have been installed at over 500,000 digital cable service subscribers in North America. Customers include leading cable firms Cox Communications, Time Warner Cable, Rogers Cable, and Blue Ridge Communications.

The company also said that Santo Politi, a Charles River partner, is to join the board.

BigBand was founded in 1999. In August 2000 it raised $30 million at $100 million value from Redpoint, Evergreen, Cedar, Pilot house, and Broadband Ventures.

BigBand has 100 employees at its headquarters in Fremont, California, at the R&D outfit in Tel Aviv, and in its London branch.