Cradlepoint has secured $89 million in investment funding and plans to use part of it to enhance its global partner program.
The funding round was led by TCV, a provider of capital to growth-stage private and public companies in the technology industry. Cradlepoint will use these funds to “drive continued growth and further capitalize on the disruption in the enterprise wide area networking (WAN) market," the company said.
This includes expanding product initiatives in software-defined networking (SDN), advanced 4G and 5G wireless connectivity, and enterprise Internet of Things (IoT).
Ed Walton, Cradlepoint’s vice president of North American channels and alliance, tells Channel Partners that part of the money will be invested in the partner program, including new hires on the channel team, marketing development funds and partner program incentives.
“We’re also planning additional enhancement to partner enablement and certifications through Cradlepoint University later this year," he said. “Channel partners and the channel ecosystem are hugely important to Cradlepoint’s success. We are a 100 percent channel company, something that we’re very proud of. Our company is growing very rapidly and we continue to evolve by being able to deliver new solutions to help our channel partners expand their SD-WAN, SDN and IoT practices to serve their customers across all markets."
The Cradlepoint investment continues TCV’s history of investing in “sector-leading companies," such as Netflix, GoDaddy, ExactTarget, Redback Networks and Splunk, Cradlepoint said.
“Since Cradlepoint became focused on enterprise WANs in 2011, we’ve become an essential part of over 15,000 companies’ infrastructures and have experienced (a) 40 percent compound annual growth rate over the last five years," Walton said. “The connected enterprise is today’s reality and we’re committed to bringing 4G/LTE to people, places and things while we look to develop 5G for our customers."
According to IDC, the developing market for SD-WAN is projected to reach $12.5 billion by 2020, spurred on by the need for more agile, automated and available networks, and a direct result of digital transformation.
“As investors, Cradlepoint allows us to make bets on critical trends sweeping the world: from global rollout of wireless broadband to exponential growth in machine-to-machine communication and the Internet of Things," said Ted Coons, TCV’s general partner. “Cradlepoint’s technology is incredibly strategic."