Backers Sing $15M Worth Of Praise For WiChorus

By Daniel Hausmann - 9/13/2007 - VentureWire

WiChorus Inc. is announcing today it has received $15 million in Series B backing to launch its WiMax hardware.

New investor Mayfield Fund led the round and was joined by return investors Redpoint Ventures and Accel Partners. To date, the company has raised $25 million in venture capital.

Company Chief Executive Rehan Jalil said one of the main features distinguishing his technology is the ability to link cell phones to base stations. Jalil said that feature makes WiMax much more feasible and profitable.

WiChorus's yet-to-be launched hardware fits into a telecom service provider's communications rack. Called an Access Services Network Gateway, the device enables a service provider to monetize the Internet, control network traffic and manage subscribers and services.

The gateway can monetize the Internet by identifying a user's location and helping a Web publisher supply appropriate ads. For example, a New England resident who has traveled to Great Britain would get ads for London restaurants, not Boston eateries, through his or her PDA's Internet feature.

Jalil was not ready to release information on the product's launch date or its price. He said the company has been generating limited revenue during its trial phase. Jalil declined to release the company's post-money valuation.

Typical customers would be large wireless or wired companies in emerging and developed markets. Jalil said WiChorus would target emerging markets because they are often willing to embrace new technology.

Mayfield Fund Managing Director Navin Chaddha invested out of Mayfield Fund XII, which closed in 2005 with $400 million. Mayfield has invested in a number of broadband and wireless companies, including Redback Networks, currently trading on Nasdaq.

Chaddha said he was attracted by the fact that WiChorus seemed to be the only start-up working on this technology, though he said larger established companies are working on their own versions. Chaddha has joined the company's board.