LOUISVILLE, KY (April 1, 2009) – SinglePipe Communications (SinglePipe), a leading provider of wholesale Digital Voice services to the cable and other broadband industries, announced today that it has secured $5.1 million in new equity. The company plans to use this funding to support its aggressive growth plans as it continues to expand its network and customer base.
SinglePipe is a leading managed service provider delivering turnkey Digital Voice solutions to cable operators and other broadband providers, enabling them to deliver digital voice services to small and medium business (SMB) and residential customers over broadband connections with reliability, ease, and service levels that meet or exceed their current offerings. From customized product solutions, to marketing and sales support, to provisioning, installation, and end customer support, SinglePipe empowers cable and other broadband customers to maximize revenues through simplified and accelerated Digital Voice rollouts.
Unlike most other Digital Voice providers, SinglePipe owns its own network. As a result, the company is able to provide higher quality at a lower price, relative to other providers who must rely solely on third party networks. In addition, SinglePipe’s platform offers the most advanced calling features to enterprise and residential customers and provides state-of-the-art, back office systems, and customer support.
According to Matt Phillips, CEO of SinglePipe Communications, “SinglePipe stands alone in the unique position to deploy and deliver customized and scalable Digital Voice solutions to cable and other broadband providers. Our services require minimal investment and create consistent streams of additional revenue for our customers, and at the same time, meet the complex demands of today’s telecommunications marketplace. In an industry where our competitors are funded by groups of individual investors, SinglePipe has the institutional backing which allows us to take a longer-term approach.”
SinglePipe’s cable and broadband customers in fact are seeing accelerated growth in the “triple play” bundle which offers TV, Internet, and phone service combined as consumers demand greater value in the slowing economy. According to Steve Tanabe, Operations Manager at Northland Cable Television, “Combined with Northland’s local service and support, customers are adopting the “triple play” with TV, unlimited phone, and Internet at a faster rate than ever before. SinglePipe’s products and exceptional service are critical for cable operators like Northland to provide a product that meets our customer’s expectations.”
“We are pleased with SinglePipe’s continued and consistent growth from both its current customer base and news sales opportunities,” said Wright Steenrod, Chrysalis Ventures Principal. “We believe the company’s ability to provide managed turnkey solutions for different components of cable operators’ voice services will continue to be a strong point of differentiation and sales growth.”
“I am very pleased that Meritus Ventures is a participant in this round of financing and am expecting strong performance in 2009 and beyond,” added Ray Moncrief, Meritus Ventures Fund Manager. “We use SinglePipe’s Digital Voice product and find that it creates great value, dependability, and flexibility in our business.”
Existing investor Chrysalis Ventures, a leading source of equity capital for young growth companies in the Midwest and South, led the financing. London, Kentucky-based Meritus Ventures, a Rural Business Investment Company (RBIC) which invests in expansion-stage companies in central and southern Appalachia and existing SinglePipe investor, participated in the financing. The Kentucky Science and Technology Corporation also joined as a co-investor.
About SinglePipe Communications
SinglePipe Communications is a facilities-based managed service provider of wholesale residential and business digital voice services to cable and other broadband operators. SinglePipe empowers its wholesale customers with the means to deploy and manage customized, flexible and scalable Internet Protocol-based telephony services. For additional information on SinglePipe, please visit: www.singlepipecom.com.
About Chrysalis Ventures
Founded in 1993, Chrysalis Ventures is the premier venture capital firm in Mid-America, managing one of the region’s largest funds for early-stage and growth investments. Chrysalis invests primarily in early-stage and expansion-stage companies in healthcare services and technology, media and communications, and emerging trends and technologies. Based in Louisville, Kentucky, Chrysalis has approximately $400 million under management and has made investments in 60 companies. For more information, please visit www.chrysalisventures.com.
About Meritus Ventures
Meritus Ventures, L.P. is currently the only Rural Business Investment Company (RBIC) in the United States. The $36.5M venture capital fund invests to realize attractive returns for the fund’s investors while creating wealth and jobs in rural areas of central and southern Appalachia and Arkansas. In addition to providing equity investment, the fund may provide operational assistance to its portfolio companies. For more information, please visit www.meritusventures.com.
About Kentucky Science and Technology Corporation
The Kentucky Science and Technology Corporation (KSTC) is a private, nonprofit corporation committed to the advancement of science, technology and innovative economic development through Kentucky. KSTC develops and manages creative initiatives in education, economic competitiveness and scientific research. KSTC has three funds (the Kentucky Enterprise Fund, the Rural Innovation Fund, and the Kentucky New Energy Ventures Fund) that provide seed stage capital that focus on the early-stage commercialization of a technology-based product or process. For more information, please visit www.startupkentucky.com.