BelAir Networks deal makes it 15 for 2007

With our latest transaction, we’ve closed 15 financings in our Fund III during 2007. I’d say it is time to take a breath for the holidays, but the pipeline for ’08 beckons.

We provided $5.5 million yesterday to Ottawa-based BelAir Networks, as part of a $17.5 million financing round. Marwan Kubursi and Mario di Pietro of CIBC World Markets acted as financial advisors to BelAir’s board on this round of financing.

Export Development Canada’s venture capital arm led the equity tranche, with existing investors (Comcast Interactive Capital, T-Mobile Venture Fund, Trilogy Equity Partners, Panorama Capital {formerly JPMorgan Partners}, VenGrowth Capital Partners Inc., BDC Venture Capital, Ventures West Management, McLean Watson and MMV Financial) doing their piece as well.

That’s a long list, and the first time we have done a financing with several of these venture firms. It was, however, our 7th deal with VenGrowth Capital Partners, and our second this year with both the BDC and EDC Venture Capital teams. And while we’ve taken out MMV Financial in venture-backed deals before, this is the first time we’ve come into a situation where they are staying on as a lender.

With Ventures West and McLean Watson also key shareholders, BelAir has been very successful in attracting many of Canada’s top VC names since the start-up round was announced in November 2002.

BelAir was able to raise funds in a difficult venture capital market for one simple reason: they are succeeding at their business plan. Founded in 2001, BelAir supplies broadband mesh solutions for Wi-Fi and 4.9 GHz Public Safety networks.

BelAir has developed a variety of multi-radio outdoor wireless boxes or “nodes” (size and shape of a small beer keg) that form the basis of a wireless mesh network. Nodes are built for outdoor deployment and can be mounted directly on buildings, on light poles, and in parking lots and city streets. Each BelAir node includes a certain number of radio slots (depending on the product model) that contain a combination of Backhaul Radio Modules and Access Radio Modules. Modules are designed to support a broad range of Wi-Fi (IEEE 802.11a/b/g), 4.9GHz Public Safety and Cellular (via a T1/E1 BelAir “Circuit Emulation Module”) applications.

BelAir has developed strong channel partnerships with large resellers, which include Alcatel-Lucent, Siemens, and Fujitsu, and a strong market presence with multiple system operators such as Comcast, Time Warner, Cablevision, Bright House Networks etc. The majority of BelAir’s clients are service providers – customer list includes AT&T, Sprint Nextel, T-Mobile, US Internet, Cityspace (UK), and Toronto Hydro Telecom.

BelAir has deployed its technology in more than 300 networks worldwide. Deployments include the largest public safety network in the United States – Minneapolis, Minnesota and other large deployments in Washtenaw County, Michigan, London England, and here in Toronto.

The company’s products have been utilized in a variety of urban and non-urban settings:

• Citywide Muni Wi-Fi networks for municipal workers, public safety personnel and public high-speed access;
• Hotels, conference and convention centers;
• Education campuses;
• Multiple dwelling units; and
• Transportation centres and corridors.

We are delighted to join the investor group as a venture debt supplier, and to support the superlative impact that CEO Bernard Herscovich, CFO Peter Rose, and the entire team are having at BelAir. With financings at dna13, Gridpoint, Group IV, SiGe, Espial, Bridgewater and Wellington Financial Fund III portfolio co. Eedo, among others, the Ottawa / Gatineau region tech community has enjoyed some success this year.

MRM