News

Darwin Networks lands $91M in venture capital

April 25, 2002

LOUISVILLE, Ky.¾In what may be the single largest venture capital deal in the state of Kentucky, public Internet kiosk andhigh-speed Web access firm Darwin Networks has secured $91 million from its investors, the company announced.

The figure marks the end of a second round of capital funding for Darwin, bringing the company's total to $120 million raised in little more than a year. The first stint of financing raised $29 million in August 1999.

A group of investors from around the world lent their resources to Darwin's latest financing effort. Darwin Networks CEO Jon Spector called the company's accomplishment "a tremendous vote of confidence" from a distinguished group of investors. Louisville-based Chrysalis Ventures led the first round of financing. Working with Chrysalis Ventures, San Francisco's Fremont Group topped the second round.

In addition to Chrysalis Ventures,other investors in the latest fund-raising round include: Iceberg Ventures and Mayfair Capital of Louisville; River Cities Capital, Cincinnati; National City Equity Partners, Cleveland; Richland Ventures, Nashville; MF Private Capital, Boston; PNC Investment Corp., Pittsburgh; Lehman Brothers, Peak Capital and Windcrest Partners, New York; Bailey Capital, Palm Beach; THK Private Equity, San Francisco; Paul Allen's Vulcan Ventures, Seattle; and UOB Venture Investments, Singapore.

Company restructuring

Milestones in venture capital funding aren't the only things bringing attention at Darwin Networks.

The company is adopting a new organizational plan, one that transforms it from a vertical market structure to a geography-influenced model. The restructuring is a result of Darwin's recent hiring boom. The company has grown from 175 employees to over 600 nationwide.

Multi-functional offices will be established in Darwin's 12 core markets: Louisville, Cincinnati/Dayton, Washington, D.C./Baltimore, Philadelphia, Atlanta, Austin, Dallas, Miami/Ft. Lauderdale, Seattle, San Diego, Tampa/St. Petersburg and Walnut Creek/San Francisco.

Each office will sell and deploy Darwin products to each of its customer segments and serve existing customers in those markets and abroad.