MANHASSET, NY -- Quantenna Communications has closed a $79 million funding round led by new lead investor Rusnano, with participation by a second new investor Bright Capital.
Rusnano will invest up to $40 million and Sequoia Capital Growth Fund will contribute $20 million. All existing major investors, Sequoia Capital, DAG Ventures, Grazia Equity, Sigma Partners, Southern Cross Venture Partners and Venrock Associates have also participated in the financing.
Rusnano’s investment will leverage synergies between Quantenna’s portfolio and a number of nanotechnology initiatives that are underway at Rusnano, whose mission is to develop the Russian nanotechnology industry through a variety of co-investment opportunities, according to Rusnano.
Rusnano Managing Director George Kolpachev will become a member of Quantenna’s board of directors, and Rusnano investment manager Vladislav Tropko will become a board observer. Quantenna will open a Russian subsidiary.
“Sequoia Capital is pleased to be a returning investor in this funding round with a significant investment through our Sequoia Growth Fund,” added Mike Goguen, Managing Partner, Sequoia Capital. “We believe Quantenna is entering a new phase of hyper revenue growth.”
Quantenna is pursuing 40- and 28-nm process technology for its next-generation products.
“Quantenna has done more than any other company in the world to unleash the technical potential of Wi-Fi by pioneering 4x4 solutions,” said Kolpachev, in a statement. This investment, along with our collaboration on a subsidiary entity in Russia, will help expand the role that Russia’s science and engineering schools are playing in the development of world-class solutions for the rapidly growing wireless equipment segment.”
According to Cisco’s 2011 Visual Networking Index Forecast, video alone is expected to reach about 90 percent of global traffic.
Quantenna’s funding will be used to expand its engineering and service organizations in order to support the rapidly growing list of service providers deploying its 4x4 MIMO 802.11n chipsets worldwide. Quantenna will also use the funding to accelerate new product development as it enters new market segments.
“In this fast-growing market space, our technology continues to be the leading choice among service providers for ultra-reliable wireless video distribution anywhere in the home,” added Dr. Sam Heidari, Chief Executive Officer, Quantenna. “Our video-over-Wi-Fi chipsets are on their way to penetrating new markets this year beyond the service provider segment. The round also enables us to expand our presence in Russia with the addition of a team of highly qualified specialists.”