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Magnolia Broadband Plucks $6M in Series C
By Michelle Tsai
7/8/2003
CLINTON, N.J. -- Magnolia Broadband, developer of low-power radio frequency chips, said closed $6 million in Series C funding.

All existing investors provide the funding. SCP Private Equity Partners led the round, which also included DFJ Gotham Ventures, ECentury Capital, and Selway Partners. Silverstar Holdings, which provided seed funding for Magnolia, has the option to invest.

Although Magnolia had previously intended to raise $6.5 million to $10 million in this round, the firm decided instead to raise a larger Series D round later this year. "We decided that it would be better to go outside of the current investors at a later stage when we have full market validation, including a customer," said John Moon, senior vice president of corporate development. Mr. Moon said Magnolia Broadband will raise $10 million in Series D funding in the fourth quarter this year or early next year.

The company will devote its new capital to completing technology trials with potential customers, especially wireless CDMA carriers, and to complete the development and launch of the chipset.

The startup's technology is based on antenna diversity, which uses two antennas to increase capacity, coverage, and quality in sensing or transmitting signals. The technology takes advantage of the two antennas, which together result in a ten-fold increase in signal gain.

Prior to Series C funding, Magnolia Broadband had raised $9 million from investors.

http://www.magnoliabroadband.com