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Kennet Capital backs Finland's VDSL Systems

July 6, 2000,
by volcanic

Kennet Capital ("Kennet"), a venture capital fund focused on European technology, internet and telecoms companies, announced today that it has invested in Finnish technology company VDSL Systems Oy ("VDSL Systems"), which develops VDSL (Very High-Speed Digital Subscriber Line) broadband communications equipment.

Kennet's investment is part of a FIM 16 million (Euro 2.7m) financing of VDSL Systems, which will provide the capital needed to fund the next stage of the company's development. SFK Finance, which was recently acquired by 3i, is an existing investor in VDSL and has co-invested in the current financing.

VDSL Systems designs high-speed broadband equipment that can integrate with conventional telephone networks. The company’s products exploit the theoretical maximum available transmission capacity over traditional copper lines. VDSL technology has the capacity to run uplink speeds at over thirty times the speed of ADSL, with uploading and downloading speeds capable of reaching 26Mbps. VDSL technology will enable the highly cost-efficient implementation of services such as video-on-demand, video conferencing, as well as super-fast Internet connections.

VDSL Systems, founded in 1999, is headquartered in Espoo, Finland. The company currently employs 25 people and expects to grow the team to 40 by the end of the year.

Commenting on the investment, Michael Elias, managing director of Kennet, said: "VDSL Systems has developed a world-class technology and has the potential to be a significant player in the rapidly expanding broadband communications equipment industry. We recognise the company's considerable growth opportunities and we are confident that the company will expand aggressively with its new funding."

Vesa Sadeharju from SFK Finance added: “This investment is an important step forward towards developing VDSL Systems into a true global player in the DSL market,”

"This investment by a respected international venture capital group is further evidence of the strength of the technology and an endorsement of VDSL Systems’ development strategy. With an investor that has strong relationships in the American and European markets, we are even more confident than before about our future”, concluded VDSL Systems’ president, Jussi Autere.

About Kennet Capital Limited

Kennet Capital Limited is the early-stage venture capital affiliate of Broadview, a leading global M&A advisor and private equity investor focused exclusively on the IT, communications and media industries. The fund has $275 million under management. Kennet Capital Limited places a strong emphasis on investments in networking and communications technologies, semiconductor IP, Internet infrastructure and enterprise software. Kennet Capital Limited strives to leverage the collective intellectual capital of the entire Broadview organization to the benefit of portfolio companies. Kennet Capital Limited is regulated by IMRO in the UK.