Back in November of 2007, VC Cafe reported on Comability’s first round of $6 million, to provide the backbone for Broadband Internet, cellular and WiFi providers in a cheaper and more flexible way than other players in the market.
Today ComAbility has announced an additional cash injection of $4 million to the same round led by Vertex Venture Capital. This brings the current round to $10 million, which also includes Stata Ventures.
The proceeds of this round will be dedicated to improving the neXus platform for what seems to be a surge in the market need. neXus is already successfuly operating for DSL, cellular, and WiFi service providers in Israel and in other countries. In addition, ComAbility is a Cisco Technology Development Partner and is involved in a joint session repository project with Oracle.
ComAbility’s CEO Alon Fishman said in the press release:
“Especially in times like these, service providers are looking for ways to differentiate services and improve operations. Demand for mobile, wireless and wireline data services are skyrocketing, and operators that do invest in new networks seek to implement modern business models, like differentiated services, converged admission control and advanced pre-paid and policy use cases. These revenue-generating models must be supported by advanced operational models such as automation, subscriber self service, and subscriber-centric fault management.neXus’s ability to reduce operational costs (OPEX) and to quickly deploy new services — increasing average revenue per user (ARPU) — falls in line with industry analyst predictions indicating SPs’ intensified need for technologies that provide personalized subscriber services.”
Given the decline in advertising dollars, the subscription model must have proved itself. The company has been profitable almost from its inception in 2004, with little investment. Add profitability to a hot trend like cloud services, and you’ve got yourself a pretty sexy investment for any VC.