Louisville, KY (January 22, 2007) – Chrysalis Ventures, a leading source of equity capital for growth companies in the Midwest and South, announced today that it has led a $4.0 million Series A investment in SinglePipe Communications (“SinglePipe”), a leading facilities-based wholesale communications provider of Voice over Internet Protocol (VoIP) services.
The Series A equity investment funded SinglePipe’s acquisition of ALEC, a Lexington, Kentucky-based Competitive Local Exchange Carrier (CLEC) and provided working capital necessary to aggressively market the company’s products. Lexington, Kentucky-based SinglePipe has the network, back office infrastructure, and experienced management necessary to be a leading wholesale VoIP provider in the United States.
SinglePipe is a fully-integrated facilities-based wholesale communications provider to CLECs, internet service providers (ISPs), cable companies, integrators, and other technology service providers. These channel segments use SinglePipe’s turnkey VoIP service to sell to small and medium sized business (SMB) customers and rural customers who typically lack the network, the back office, or the expertise to deploy VoIP to their customer base.
SinglePipe offers turnkey solutions for residential VoIP, hosted PBX, and SIP Trunking over its highly reliable network, providing substantial flexibility and price point advantages for service providers. The company’s existing private network allows the company to provide wholesale local telephone service at a lower cost compared to traditional voice options, as well as to offer the rapid and cost-effective introduction of new features and services at no additional cost.
According to Carlos “Doc” Carpenter, SinglePipe Chief Executive Officer, “We are delighted to partner with Chrysalis Ventures for this important round of initial financing. In addition to capital, Chrysalis brings valuable strategic insight and telecommunications experience to the table as we launch SinglePipe and aggressively exploit the rapidly expanding VoIP market.” Mr. Carpenter has over twenty years in the telecommunications industry and previously founded three telecommunication ventures in the southeast United States including NorthStar Technology, a PCS provider in Southeast Kentucky, KIH Online, a data services company that was the first ISP to network an entire state and Touchstone Communications, a CLEC that provided services to the ISP market throughout Kentucky.
“We are attracted to VoIP because it is a proven technology experiencing rapid adoption,” said Wright Steenrod, principal of Chrysalis Ventures. “This investment combines this important telecom market opportunity with an experienced management team, and is a great fit for our portfolio of media and communication investments.”
Mr. Steenrod has joined SinglePipe’s board of directors.
About SinglePipe Communications
SinglePipe Communications is a leading facilities-based wholesale provider of Voice over Internet Protocol (VoIP) services to CLECs, ISPs, cable companies, integrators, and other technology service providers.
SinglePipe offers turnkey solutions for residential VoIP, hosted PBX and SIP Trunking over its highly reliable network providing substantial flexibility and price point advantages for service providers. For more information, please visit www.singlepipecom.com.
About Chrysalis Ventures
Founded in 1993, Chrysalis Ventures is a leading source of equity capital for young growth companies in the Midwest and South. Chrysalis invests primarily in early-stage and expansion-stage companies in healthcare services and technology, media and communications, and business services. Based in Louisville, Kentucky, Chrysalis has more than $250 million under management and has made investments in over 50 companies. For more information, please visit www.chrysalisventures.com.