Ellacoya Networks Inc, a provider of bandwidth management solutions, has secured $7m in a Series B round, its second round of funding since it completed a restructuring program in December 2002.
Existing investors Atlas Venture, Flagship Venture Partners, and Lightspeed Venture Partners participated in the financing round. The funding will used to support revenue growth and allow for continued technical development. In addition, in order to support increasing overseas demand, it has also announced the opening of two new overseas offices in the UK and Japan.
Ellacoya’s IP Service Control System allows for the management of network activity, provides reports, and manages bandwidth automatically, based on policies set by the service provider.
The Merrimack, New Hampshire-based company has had a troubled past. It was once regarded as something of a high flier in the networking industry after it attracted more than $100m in VC funding and even contemplated an IPO at the height of the internet bubble in 2001.
It was targeting local exchange carriers with a product that helped carriers provision and deploy new services, but the decline in carrier spending meant that Ellacoya came close to collapse and was forced to undergo a massive restructuring in December 2002, a move that entailed large-scale job losses.
However, following the restructuring, it astutely retooled its product for cable operators. The new product was marketed as a way for cable operators to manage capacity for networks often clogged by high-bandwidth applications and peer-to-peer file sharing.