LEXINGTON, KY (October 29, 2007) – SinglePipe Communications, Inc. (SinglePipe), a facilities-based wholesale communications provider, announced today that it has received an additional $2.5 million in equity funding. The financing was led by Louisville, Kentucky-based Chrysalis Ventures, a leading source of equity capital for growth companies in the Midwest and South. London, Kentucky-based Meritus Ventures, L.P., a Rural Business Investment Company (RBIC) which invests in expansion-stage companies in central and southern Appalachia, also participated as a co-investor.
SinglePipe provides residential and business VoIP services through wholesale and agent channels to clients across the United States with points of presence throughout the Southeast. The company delivers private-branded turnkey wholesale VoIP solutions to a large provider universe that includes Cable Operators, Competitive Local Exchange Carriers (CLEC’s), Internet Service Providers (ISP’s), Wireless ISP’s, VoIP Providers, and Value Added Resellers (VAR’s). SinglePipe offers turnkey solutions for residential VoIP, Hosted PBX, and SIP Trunking/Line Replacement over its own highly reliable network and in conjunction with partners nationwide. Its services include origination/termination, turnkey VoIP with industry-leading support, training and marketing resources.
In January 2007, the company raised a $4.0 million Series A equity investment, also led by Chrysalis Ventures, to fund its acquisition of ALEC, a Lexington, Kentucky-based CLEC and provide working capital necessary to aggressively market the company’s products. As a result of this existing private network, the company is now able 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 Matthew J. Phillips, SinglePipe CEO, “We are delighted to partner with Chrysalis Ventures and Meritus Ventures for this additional round of equity financing which will help us continue to grow our business. In addition to capital, both investors provide strong leadership and expertise to support our aggressive entry into the rapidly expanding VoIP market.”
“SinglePipe is off to a great start and we are pleased to participate in this follow-on round of growth capital,” said Wright Steenrod, principal of Chrysalis Ventures and member of the SinglePipe board of directors. “Meritus Ventures is an experienced partner and we are excited they have chosen to invest in the SingePipe team.”
“We are very pleased to be co-investing with Chrysalis Ventures in SinglePipe Communications in this follow-on round of growth capital,” said L. Ray Moncrief, Meritus Ventures Fund Manager. “This investment highlights the fact that high-tech businesses flourish in rural areas and that rural businesses can attract high-quality management teams.”
About SinglePipe Communications
SinglePipe Communications is a facilities-based VoIP provider focused on delivering residential and business services to the wholesale and channel markets (including Cable Operators, CLEC’s, Internet Service Providers, Wireless ISP’s, VoIP Providers, ASR’s and VAR’s). SinglePipe offers turnkey solutions for residential VoIP, Hosted PBX, and SIP Trunking/Line Replacement over its own highly reliable network and in conjunction with partners nationwide. Headquartered in Lexington, KY, SinglePipe has offices in Louisville, KY; Charlotte, NC and Atlanta, GA. 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 $300 million under management and has made investments in over 50 companies. For more information, please visit www.chrysalisventures.com.
About Meritus Ventures, L.P.
Meritus Ventures is currently the only Rural Business Investment Company (RBIC) in the United States. The $36M+ venture capital fund was formed to generate attractive returns for the fund’s investors while creating wealth and jobs in rural areas of central and southern Appalachia. In addition to providing equity capital, the fund may provide operational assistance to its potential and actual portfolio companies. For more details about the fund, please visit www.meritusventures.com.