Xtera raises $52M for optical technology for broadband providers

August 10, 2007 | Matt Marshall

Xtera, an Allen, Texas company that supplies optical transport technology to broadband service providers, said it has raised $52 million in new financing.

The round was led by existing investors New Enterprise Associates (NEA) and ARCH Venture Partners and by new investor Wellcome Trust of London. Wellcome Trust made up about half of the investment.

Here’s the statement.

Xtera says it offers a offers a “multi-reach OADM transport solution with the headroom to deliver abundant high-quality video, data and advanced voice services” — serving regional, long haul, ultra-long haul and “unrepeatered submarine” applications.

The company told VentureWire (subscription only) it is also about to embark on a series of acquisitions, the first one to be announced Monday.

This company has been around for a while. Founded nine years ago, Xtera struggled in 2003 after the telecom investment bubble burst, and recapitalized.

Other investors include Berkeley International, CenterPoint Venture Fund, ComVentures, EDF Ventures, Hook Partners, InterWest Partners, Rho Ventures, Sevin Rosen Funds and Start Ventures.

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Tags: deal

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.