DriveNets, a networking software company, has emerged from stealth and announced a first round of financing of $110M to accelerate its revolution of Service Provider networks.
The round was led by Bessemer Venture Partners and Pitango Growth, with the participation of a number of private investors. DriveNets says it addresses one of the biggest challenges facing the telecommunications industry today: demand for services is skyrocketing exponentially but customers are not paying more. Profits are shrinking and service providers need a new paradigm.
Coupling technological innovation with a unique business model, DriveNets’ Network Cloud solution disrupts network economics. It disconnects network cost from capacity growth and allows communication service providers (CSPs) to handle skyrocketing demand without sacrificing profitability. Network Cloud radically simplifies network operations, as it can create any network function from the same software stack and only two generic hardware building blocks. And since the entire infrastructure is software-centric, Network Cloud accelerates new service rollouts at full network scale.
DriveNets was founded in late 2015 and has been self-funded until now. The company achieved its first major contract in 2017, which brought its technology to the production network of a tier-1 North American service provider. Since then DriveNets has recorded revenues of tens of millions of dollars. The new financing will fuel DriveNets’ ambitious growth plans, as it expands its product portfolio and penetrates new markets worldwide. The company has 150 employees and plans to expand to 200 staff members by the end of the year.
DriveNets was founded by Ido Susan and Hillel Kobrinsky, two successful telco entrepreneurs. Susan previously co-founded Intucell, the company that invented the Self Optimizing Network (SON) and was acquired by Cisco for $475 million. Kobrinsky founded the web conferencing specialist, Interwise, which was acquired by AT&T for $121 million.
DriveNets’ software runs over a low-cost white box hardware that can address any routing use case, helping CSPs open up and commoditize their physical infrastructure.