Press Releases | 2000
Vertex Invests $2 Million in Geyser Network
Vertex teams up with Wu Fu Chen, the legendary networking entrepreneur
Sep 5, 2000
Vertex invested over $2 million in Geyser Networks Inc., another endeavor of its CEO, Wu–Fu Chen, the famous serial entrepreneur. Geyser Networks manufactures next generation access products that enable carriers to offer flexible bandwidth services over SONET (Synchronous Optical Network Technology), an optical transport system for the metro area. That flexibility will enable carriers to carve up bandwidth into smaller chunks to support more customers. Gordon Lee, co-founder and VP Engineering, said ‘Geyser Networks is loosening the bandwidth pinch in the metro core.’ Vantage Point Venture Partners led the round, other investors included Motorola, Boston Millenia and existing investors included Crimson and Sequoia Ventures.
Wu Fu Chen was the founder of Cascade Communications, bought by Ascend Communications for about $3.5 billion; Shasta Networks, purchased by Nortel Networks for about $340 million and Ardent Communications, sold to Cisco Systems for almost $200 million. His current endeavors include Anda Networks and Santera Systems (where he had been top man and now serves as Chairman) and Optimight (another Vertex company). He is a managing partner at Crimson Ventures. Wu Fu Chen is also a member a of Vertex USA’s Advisory Board.
According to Dr. Gideon Shichman, VP Vertex, "Vertex Venture Capital - Israel’s investment in Geyser Networks follows in stride with our strategy of investing in key next generation telecommunication technologies. Geyser Networks’ Wu-Fu Chen has a very impressive record in establishing successful start-ups. His companies have contributed significantly to shaping the telecommunications industry over the last decade. We are excited about the company and its technology and are confident in our ability to identify entrepreneurs that will contribute to and impact positively on the communications industry."
Vertex Israel manages three venture funds with a total capital of $250 million and is part of the international Vertex venture capital Group. The Group manages almost $1 billion through offices in the United States, the United Kingdom, Israel, Singapore, China, Taiwan and Hong Kong. Vertex Israel investments focus primarily on seed and early stage Israeli and North American start-up companies that specialize in the areas of communications and Internet enabling technologies. Strategic Vertex investors include Singapore Technologies, Israel Discount Capital Markets and Investments, Creative Technologies, Investec and Nomura/Jafco. Current portfolio companies of over 30 leading technology companies include: Tradeum (sold to VerticalNet), Telegate (sold to Terayon), MetaLink (NASDAQ: MTLK), MoreCom (sold to Liberate), PowerDsine, D-Pharm, Actelis, congruency, ImageID and VisionTech. To learn more, visit the Company’s website at www.vertexisrael.co.il.
About Geyser Networks
Geyser Networks, founded in April 1999 by industry veterans Wu-Fu Chen and Gordon Lee, develops SONET/SDH equipment for service-aware Metropolitan Area Networks that allows carriers to support multiple services utilizing bandwidth over a flexible platform fiber optic infrastructure. www.geysernetworks.com.