Battery Ventures, a venture capital and private equity firm investing in technology and innovation worldwide, has led a USD100m equity investment in Pocket Communications Northeast, a prov
Battery Ventures, a venture capital and private equity firm investing in technology and innovation worldwide, has led a USD100m equity investment in Pocket Communications Northeast, a provider of flat-rate unlimited use wireless voice and data services, alongside the firm’s president and chief executive Paul Posner and Charles River Ventures.
Pocket Communications currently operates in Texas and will use the financing to launch Pocket Northeast, which will provide services in markets including Hartford and New Haven, Connecticut, Springfield and Pittsfield, Massachusetts, and Poughkeepsie, New York.
‘We’re pleased to have secured this equity financing in what is clearly a challenging financing market,’ Posner says. ‘Our investors recognise the compelling opportunity offered by an affordable unlimited use wireless service and are confident based on our execution to date that we will build out the network quickly and keep customers in our target markets satisfied.’
Battery partner Matt Niehaus and Charles River general partner Jon Auerbach have joined Pocket Northeast’s board of directors. Bank Street Group served as financial advisor and placement agent in connection with the financing.
‘Pocket is really changing the unlimited wireless game, which has been successful against legacy wireless providers but mostly limited to single market footprints for many years,’ Niehaus says.
‘With the Pocket Northeast launch, the company will push beyond the norm and establish a broad footprint network, serving consumers and business users across multiple markets. It’s an ambitious plan, and we believe the company has the right ingredients to be successful: a smart strategy, a sound operating model, an experienced management team, and a tremendous opportunity to expand the market.’
Pocket Wireless offers a flat-rate service that allows customers to place and receive unlimited wireless calls within a local service area for a flat monthly fee without the one- or two-year contract typically required by established mobile telephony companies. Launched in 2005, Pocket Communications is Texas’ fastest-growing flat-rate wireless company, with more than a quarter of a million subscribers.
Since 1983, Battery has been investing in technology firms throughout their life cycle, from start-up and expansion financing to growth equity and buyouts. Battery has offices in Boston, Silicon Valley and Israel, and currently manages nearly USD3bn in committed capital. Founded in 1970, Charles River Ventures is an early-stage venture capital firm with some USD2.1bn under management, and has offices in Boston and Menlo Park, California.
