AAA Federated Wireless mobilises investors to raise $42m

Federated Wireless mobilises investors to raise $42m

Federated Wireless, a US-based developer of phone spectrum management technology, closed a $42m series B round today that was co-led by corporates Charter Communications, American Tower and Arris International.

Telecommunications firm Charter, telecom equipment maker Arris and wireless and broadcast communications infrastructure operator American Tower co-led the round with Singaporean sovereign wealth fund GIC.

Commercialisation firm Allied Minds and Woodford Investment Management, the investment vehicle that owns a stake in Allied Minds, also participated in the round, which valued Federated Wireless at approximately $122m post-money.

Federated Wireless was set up in 2012 by Allied Minds and is working on shared spectrum technology that enables commercial carriers and governments to securely use the same 3.5GHz telecom band without impacting quality of service.

The approach makes it possible for carriers to launch additional services, while enabling new providers to enter the mobile phone market without the need to own spectrum directly. It can also be used to make existing 4G networks more stable.

The company’s technology is based on research conducted at Virginia Tech. Federated Wireless launched its first device today to enable pilot field trials, though it is not expected to gain US regulatory approval for full commercial deployment until the first quarter of 2018.

Proceeds from the series B round will go toward sales and marketing, customer support and deployment services. Federated Wireless previously raised $22m in a series A round led by Woodford Investment Management in February 2016, with participation from Allied Minds.

Allied Minds had earlier provided $5m in series A capital for the company in 2014, though it is not clear if that amount was included in the 2016 close.

– The original version of this article appeared on our sister site, Global University Venturing.

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