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DSL.net Attracts Investment, Again
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Business New Haven
1/7/2002
By: BNH
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NEW HAVEN-DSL.net Inc. (NASDAQ:DSLN), which provides high-speed Internet access to small- and mid-sized businesses nationwide, announced that a consortium of investors, led by Columbia Capital and including Charles River Ventures, Hunt Private Equity Group, and National Investors Group, has agreed to invest $15 million in DSL.net convertible redeemable preferred stock. The new investment is contingent upon stockholder and regulatory approvals, which are expected to occur in the first quarter of 2002.
The new investment is in addition to a $15 to $20 million financing from VantagePoint Venture Partners that was announced in October. Aqccording to the company the combined $30 to $35 million investment will position DSL.net to accelerate its growth plans and to fund the company through cash flow positive, based on the company's current plans and projects.
Harry Hopper, managing partner of Columbia Capital, a private investment firm with more than $1.4 billion under management, said, “Columbia Capital, and the members of our syndicate, were impressed with DSL.net's unique business model, experienced management team and its ability to execute quarter after quarter. We are confident that the new dollars will be used effectively to capitalize on the significant growth opportunities that exist for well-funded companies in today's business broadband arena.”
An initial closing is expected to occur by the end of 2001, at which time the company is expected to receive $10 million. The remaining $5 million investment is scheduled to close upon receipt of stockholder approval and completion of the VantagePoint financing.
Keith Markley, president and chief operating officer of DSL.net said, “While we are still focused on achieving positive cash flow in 2002, this new funding allows us to steam ahead on our growth plans. We are very excited about cranking up our smart growth engine again.”
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