Idetic Inks Deal With Siemens- Starts Raising First Round
Wednesday, April 24th, 2002BERKELEY, Calif- On the heels of a partnership agreement with Siemens information and Communication Mobile announced earlier this week, Idetic, a developer of wireless network management software, has started raising its first round of financing after a series of acquisition discussions with undisclosed suitors, Phillip Alvelda, chairman, co-founder, and chief executive, told VentureWire.
As a part of the partnership deal, Siemens IC Mobile, the German electronics company’s wireless devices unit, will license Idetic technology for its mobile Internet products portfolio. The agreement also includes joint product development. Mr. Alvelda declined to say whether Siemens has taken an equity stake in Idetic.
Idetic released its first product in March 2001 and started generating revenue in November 2001. Its product is called Far Reach, a network management platform for wireless carriers and network operators. Mr. Alvelda said the company began acquisition discussions with a number of companies late last year. Idetic has received at least one offer, which it refused.
This first round targets between $4 million and $7 million from venture capital firms and strategic partners. The projected up round is expected to close within two months. The company raised approximately $2 million in its first seed round of financing in December 2000.
Existing investors Gefinor USA, Inman Ventures, and Big Sky partners have expressed interest in this latest round and together are expected to contribute up to $1 million in the series B round, Mr. Alvelda said. Gefinor USA and Inman Ventures have merged into a new entity called Gefinor Ventures since their individual investments in Idetic.
The proceeds of the round will be used to pursue deals with OEMs, to pursue new business initiatives in Asia and Europe, to increase its patent portfolio, to increase its technical staff, and for product development.
Founded in November 1999, Idetic employs 12 and its headcount is expected to increase to almost 40 by the end of the year. Mr. Alvelda said the company has its feelers out for the right person to succeed him as CEO in what he Described as the next progression for the company.
Idetic’s management team consists of Paul Scanlan, co-founder and vice president of marketing; Jeremy DeBonet, chief technology officer; Ed Coleman, vice president of business development; Jeff Annis, co-founder and director of product development; and Todd Stiers, director of software development. The company’s three founders, Messrs. Alvelda, Scanlan, and Annis, serve on the board. Mr. Alvelda said it will be reconfigured after the upcoming round.
The company’s board of advisors includes Admiral Bob R. Inman, former deputy of the NSA and CIA; Vern Stevenson, CEO at Broadstorm and former managing director at Siemens Mustang Ventures; Ken Zerbe former chief financial officer at Apple Computers; Saed Younis, vice president of business development at Qualcomm; Moira O’Hara, sales director for network and infrastructure at Lucent; and Mukta Mukherjee, senior manager for wireless Internet strategy group at Lucent.