DriveNets connects to $262M as demand for its cloud-based network router substitute soars. Internet usage is expected to reach 29.3 billion networked devices by 2023, with the present growth rate hovering around 10%.
By 2023, there are projected to be 29.3 billion networked devices connected to the internet, with a 10% annual growth rate. A startup for businesses called DriveNets has just revealed a substantial round of funding, indicating the rising demand for their technology.
By utilising software and cloud technologies, DriveNets has created a more affordable method for service providers and other large-scale connectivity customers to scale to meet that demand. hardware.
Drivenets 262m Series
The Israeli company Drivenets provides generic “white box” architecture-based software-based internet routing solutions for service providers to use.
Drivenets has announced today that it will invest $262 million in equity capital to keep expanding its business, market reach, and technologies, a funding round Led by D2 investments.
Among the company’s existing customers are the over 100 important networking service providers, including AT&T, who in turn supply services to millions of others. Network traffic via its cloud-based architecture has surged by 1,000% over the past year.
This Series C is being led by D2 Investments, a brand-new investment vehicle with investors from the United States and the United Arab Emirates; additional participants include Pitango, Atreides Management, Bessemer Venture Partners, D1 Capital, and Harel Insurance Investments & Financial Services.
Drivenets 208m Investment
DriveNets’ most recent investment, a $208 million Series B last year, was led by Daniel Sundheim’s form D1, which, while sharing the same name as the current lead investor, helped the startup attain its $1 billion+ value.
The CEO and co-founders of the company, Hillel Kobrinsky and Ido Susan, tell me that just the fact that the valuation “has considerably improved over the preceding round” is being publicised regarding this round. It is more than $2 billion, a close business source claims.
Major corporate companies generally receive enormous funding in order to compete with networking infrastructure behemoths like Cisco, Juniper, and Huawei. (It also partially explains why large funding rounds were made available to new businesses in the neighbouring processor sector.)
Just over $580 million has already been given to DriveNets, including the startup round of $110 million headed by Pitango when it first came out of stealth mode in 2019.
We should emphasise that the funding also shows the investors’ faith in recurrently successful founders. Susan had previously founded the “self-optimising network” company Intucell, which Cisco acquired for $475 million.
Kobrinsky had based the (foresightful!) web conferencing company Kobrinsky for $121 million. DriveNets has demonstrated its ability to develop the networking industry, according to Adam Fisher, a partner at Bessemer Venture Partners, who said in a statement that “Tier-1 operators have come to trust DriveNets.” as per drivenets 262m d2 lundentechcrunch.
About Drivenets and Its Services
DriveNets continues to innovate and fulfil its purpose to change the future of the networking market while other solution providers are struggling to overcome obstacles.
The bulk of DriveNets’ users now is service providers, notwithstanding the possibility of collaboration with the biggest corporations as they create their own networking systems. Although it first rose to fame in the US, it has recently expanded its influence in both Asia and Europe.
Tier 1 and tier 2 service providers make up the majority of our clients. Susan said last week: “We’ve found that Asian operators are early adopters and open to new technologies that assist drive growth and minimise their costs.” The initial focus is primarily on saving money.
DriveNets contends that as network capacity requests increase, service providers frequently need to make significant equipment investments (and go through the costly and time-consuming process of issuing those tenders and negotiating deals).
Before DriveNets, networking was primarily based on pricey hardware.
The business says it can accomplish this by utilising its own sophisticated operating system, which is based on cloud architecture and can communicate with a less complex and more affordable system of generic network hardware kept in a provider’s own data centre.
Susan earlier told me that the switchover typically results in a 40% cost reduction.
Susan explained that although customers initially come for the deals, they ultimately stay for the services because “since our model is software-based we enable faster innovation and service rollout” because the operating system has so many different features, such as core, aggregation, peering, cable, data centre interconnection, edge computing, and cloud services.
He continued by saying that network operations had experienced a particularly enormous increase in demand in the previous 18 months due to the significant shift that digital services had experienced among consumers and businesses, though this wasn’t exactly something that benefited DriveNets as much as you might think.
The operating system has a wide variety of features, such as core, aggregation, peering, cable, data centre interconnection, edge computing, and cloud services. Susan explained that although customers initially come for the deals, they ultimately stay for the services because “since our model is software-based we enable faster innovation and service rollout.”
In the previous 18 months, network operations have seen a particularly large increase in demand due to the significant change that digital services saw among consumers and businesses, he continued, albeit this wasn’t exactly something that benefited DriveNets as much as you might think.
Faqs
DriveNets is a company that offers hosting services and builds networks on the cloud for better communication.
DriveNets was established by Ido Susan and Hillel Konbrinsky in December 2015.
Core, Aggregation, Peering, Cable, DCI (Data Centre Interconnection), and Edge cloud are among the services provided by DriveNets.
They announced raising $110 million in Series A on February 14, 2019.
