Yipes? Try yikes!
San Francisco’s Yipes, which provides “managed ethernet services” for corporate customers, said it has raised $24 million more in venture capital.
We hope Yipes’ investors have it right this time. Crosslink Capital, Norwest Venture Partners, JPMorgan Partners and Sprout Group are investing in a company that already went bankrupt once. (In 2002, a second round of investors bought the assets, and started it up again.) And already this second time, Yipes has raised nearly $94 million. With that much, it’ll have to be a home-run to make good money, something that’ll be tough in a telecom sector that moves so quickly. Granted, looks Yipes plans to do some acquiring with the money (sub req), so the business model may make more sense than it first appears. CEO John Scanlon says Yipes will begin making money by the middle of next year.
Combined with the money sunk the first time, the total now invested in Yipes since 1998 is more like $385 million, as Dan Primack points out.
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About the Author, Matt Marshall
Matt launched VentureBeat in September of 2006, with the realization that no one else was covering the entrepreneurial and tech innovation scene with the velocity or depth that he was. Prior to founding VentureBeat, he covered venture capital for the San Jose Mercury News from 2001 to 2006. In 2002, Matt was awarded "Journalist of the Year" by the Northern California Society of Professional Journalists. Prior to working at the Merc, he was a correspondent for the Wall Street Journal in Bonn, Germany from 1995 to 1998, and a writer for the Washington Post in 1994. Matt holds a PhD in Government and an MA in German and European Studies from Georgetown University. In addition to VentureBeat, Matt is also the Executive Producer of DEMO, the leading launchpad event for emerging technologies.
