OTTAWA, Canada – August 5, 2004 – Natural Convergence Inc., a supplier
of VoIP (Voice over IP) application software for service providers, today
announced the successful completion of its Series B financing round worth
CDN$12M. The investment was led by Boston-based VIMAC Ventures, LLC and includes
follow-on investment from all existing investors including Jefferson Partners,
BDC Venture Capital, Desjardins Venture Capital, Primaxis Technology Ventures,
RBQ Inc., and Purple Angel. Telecommunications industry leader, Terry Matthews
also joins as a strategic investor through investment firm Wesley Clover.
“During recent reference calls with Natural Convergence’s customers, we
encountered strong recurring themes,” said Neal Hill, Consulting Partner, VIMAC
Ventures, LLC. “The customers view VoIP as a technology that will have a major
impact on their business and they place the roll out of VoIP services as a ‘Top
3’ business priority. The small and medium-sized business market is an important
customer segment for each of these service providers and they view the company’s
product offering as ideally suited to their customer’s needs.”
“Globally, carriers have decided that now is the time for implementing hosted
VoIP solutions,” said Terry Matthews, Chairman of Mitel Networks
Corporation. “Natural Convergence has the right product, at the right
time. The company has a strong focus on the small business market which is
poised for explosive growth.”
According to Allied Business Intelligence, the VoIP market will grow from a
seedling market of $46 Million in 2001 to $36.5 Billion by 2008. Natural
Convergence believes that the underserved small business market is the ideal
entry point for VoIP services. The company’s award winning hosted VoIP
application, branded silhouette, was generally available in Q4 2003, with
product shipped and revenues realized in 2004.
“This is an exciting time for our company and the industry as mass adoption
of VoIP is well underway,” said David Cork, Founder and COO of Natural
Convergence. “Three years ago our investors committed to a product vision in
turbulent market conditions. Today they have chosen to provide continued
investment in a solid company that is ready to meet the needs of service
providers that are looking to transform their business. Natural Convergence is
in the perfect position to meet rising customer demand and secure a leadership
position in the market.”
- 30 -
About Natural Convergence
Natural Convergence Inc. develops and
markets hosted broadband communications software for service providers, enabling
them to rapidly address the underserved small business market with compelling,
cost effective and profitable voice applications. The company’s hosted IP
solution; silhouette, is the only ‘next generation’ key system available
to successfully address the vast market that has already adopted the key system
as their preferred voice solution. Natural Convergence was founded in April 2001
with offices in Allen, TX and headquarters in Ottawa, Canada. www.naturalconvergence.com.
About VIMAC Ventures, LLC
Venture Investment Management Company LLC
(VIMAC) is a Boston-based venture capital firm concentrating on early stage
information technology companies based in the eastern United States and
Canada. With roots that go back to 1982, VIMAC’s principals combine
venture capital funding with hands-on, senior-level operational experience to
help portfolio companies achieve success on a large scale. The firm currently
manages over $220 million. www.vimac.com
About Jefferson Partners
Jefferson Partners is a technology venture
capital firm focused on three sectors: enterprise software, communications
infrastructure and Internet technology. The experience of Jefferson’s principals
and strategic partners on both sides of the border enhance the firm’s ability to
attract and assess the best new technology ideas and to add value in bringing
those ideas to the global market. Jefferson’s founders have been investing
together since 1984 and have achieved an investment track record ranking in the
top quartile of comparable North American funds. Jefferson currently manages
over $200 million. www.jefferson.com
About BDC Venture Capital
Established in 1983, BDC Venture Capital
manages a $400 million portfolio invested in over 130 companies across Canada.
BDC targets high growth companies in the telecommunications, life sciences and
software fields with investments ranging from seed to mezzanine financing. BDC
Venture Capital assists its investee companies with senior executive experience
in the areas of sales, marketing, business development, production and
research. Notable investments include Tundra Semiconductor, Octiga Bay,
Ballard Power Systems, Creo Products, PixStream , Philsar and Tarian Software.
www.bdc.ca
About Desjardins Venture Capital
Established in 1974, Desjardins
Venture Capital is the venture capital fund management arm of the Desjardins
Group. It manages the assets of Desjardins, six Desjardins regional investment
funds and Capital régional et coopératif Desjardins, a public fund created in
2001 whose authorized capitalization is $1.375-billion. More than a financial
partner, Desjardins Venture Capital makes its network and expertise available
for businesses in their startup, growth and expansion, as well as their plans
for mergers, acquisitions or public offerings. More than 170 companies are
already associated with Desjardins Venture Capital. www.dcrdesjardins.com
About Primaxis Technology Ventures
Primaxis is an early stage
Venture Capital fund that invests in leading-edge opportunities in the physical
and engineering sciences. The Primaxis team includes entrepreneurs, scientists
and engineers, and business executives, who bring sector expertise, broad
operational experience and vision to our partner companies. The team works in
close partnership with technology inventors and entrepreneurs to build high
growth companies, and to build value in fundamental and strategic areas such as
technology development, intellectual property management, business development,
human resources and corporate governance. www.primaxis.com
About Purple Angel
Formed in early 2001, Purple Angel is a group of
mostly former Bell Northern Research(BNR),executives. Its' mission is to invest,
mentor, and guide start-up companies in the Ottawa area. Given the technology
and business breadth of the group, the focus is to communications and
infrastructure investment. www.purple-angel.com
About Wesley Clover
Wesley Clover is a Private Holding Company with
assets in Technology, the Leisure sector and Commercial Real Estate. The
Technology Group focuses on 'new and deep technologies' that are likely to have
considerable impact and first mover advantage in the telecommunications,
computing and networking markets. www.wesleyclover.com
OTTAWA, Canada – August 5, 2004 – Natural Convergence Inc., a supplier
of VoIP (Voice over IP) application software for service providers, today
announced the successful completion of its Series B financing round worth
CDN$12M. The investment was led by Boston-based VIMAC Ventures, LLC and includes
follow-on investment from all existing investors including Jefferson Partners,
BDC Venture Capital, Desjardins Venture Capital, Primaxis Technology Ventures,
RBQ Inc., and Purple Angel. Telecommunications industry leader, Terry Matthews
also joins as a strategic investor through investment firm Wesley Clover.
“During recent reference calls with Natural Convergence’s customers, we
encountered strong recurring themes,” said Neal Hill, Consulting Partner, VIMAC
Ventures, LLC. “The customers view VoIP as a technology that will have a major
impact on their business and they place the roll out of VoIP services as a ‘Top
3’ business priority. The small and medium-sized business market is an important
customer segment for each of these service providers and they view the company’s
product offering as ideally suited to their customer’s needs.”
“Globally, carriers have decided that now is the time for implementing hosted
VoIP solutions,” said Terry Matthews, Chairman of Mitel Networks
Corporation. “Natural Convergence has the right product, at the right
time. The company has a strong focus on the small business market which is
poised for explosive growth.”
According to Allied Business Intelligence, the VoIP market will grow from a
seedling market of $46 Million in 2001 to $36.5 Billion by 2008. Natural
Convergence believes that the underserved small business market is the ideal
entry point for VoIP services. The company’s award winning hosted VoIP
application, branded silhouette, was generally available in Q4 2003, with
product shipped and revenues realized in 2004.
“This is an exciting time for our company and the industry as mass adoption
of VoIP is well underway,” said David Cork, Founder and COO of Natural
Convergence. “Three years ago our investors committed to a product vision in
turbulent market conditions. Today they have chosen to provide continued
investment in a solid company that is ready to meet the needs of service
providers that are looking to transform their business. Natural Convergence is
in the perfect position to meet rising customer demand and secure a leadership
position in the market.”
- 30 -
About Natural Convergence
Natural Convergence Inc. develops and
markets hosted broadband communications software for service providers, enabling
them to rapidly address the underserved small business market with compelling,
cost effective and profitable voice applications. The company’s hosted IP
solution; silhouette, is the only ‘next generation’ key system available
to successfully address the vast market that has already adopted the key system
as their preferred voice solution. Natural Convergence was founded in April 2001
with offices in Allen, TX and headquarters in Ottawa, Canada. www.naturalconvergence.com.
About VIMAC Ventures, LLC
Venture Investment Management Company LLC
(VIMAC) is a Boston-based venture capital firm concentrating on early stage
information technology companies based in the eastern United States and
Canada. With roots that go back to 1982, VIMAC’s principals combine
venture capital funding with hands-on, senior-level operational experience to
help portfolio companies achieve success on a large scale. The firm currently
manages over $220 million. www.vimac.com
About Jefferson Partners
Jefferson Partners is a technology venture
capital firm focused on three sectors: enterprise software, communications
infrastructure and Internet technology. The experience of Jefferson’s principals
and strategic partners on both sides of the border enhance the firm’s ability to
attract and assess the best new technology ideas and to add value in bringing
those ideas to the global market. Jefferson’s founders have been investing
together since 1984 and have achieved an investment track record ranking in the
top quartile of comparable North American funds. Jefferson currently manages
over $200 million. www.jefferson.com
About BDC Venture Capital
Established in 1983, BDC Venture Capital
manages a $400 million portfolio invested in over 130 companies across Canada.
BDC targets high growth companies in the telecommunications, life sciences and
software fields with investments ranging from seed to mezzanine financing. BDC
Venture Capital assists its investee companies with senior executive experience
in the areas of sales, marketing, business development, production and
research. Notable investments include Tundra Semiconductor, Octiga Bay,
Ballard Power Systems, Creo Products, PixStream , Philsar and Tarian Software.
www.bdc.ca
About Desjardins Venture Capital
Established in 1974, Desjardins
Venture Capital is the venture capital fund management arm of the Desjardins
Group. It manages the assets of Desjardins, six Desjardins regional investment
funds and Capital régional et coopératif Desjardins, a public fund created in
2001 whose authorized capitalization is $1.375-billion. More than a financial
partner, Desjardins Venture Capital makes its network and expertise available
for businesses in their startup, growth and expansion, as well as their plans
for mergers, acquisitions or public offerings. More than 170 companies are
already associated with Desjardins Venture Capital. www.dcrdesjardins.com
About Primaxis Technology Ventures
Primaxis is an early stage
Venture Capital fund that invests in leading-edge opportunities in the physical
and engineering sciences. The Primaxis team includes entrepreneurs, scientists
and engineers, and business executives, who bring sector expertise, broad
operational experience and vision to our partner companies. The team works in
close partnership with technology inventors and entrepreneurs to build high
growth companies, and to build value in fundamental and strategic areas such as
technology development, intellectual property management, business development,
human resources and corporate governance. www.primaxis.com
About Purple Angel
Formed in early 2001, Purple Angel is a group of
mostly former Bell Northern Research(BNR),executives. Its' mission is to invest,
mentor, and guide start-up companies in the Ottawa area. Given the technology
and business breadth of the group, the focus is to communications and
infrastructure investment. www.purple-angel.com
About Wesley Clover
Wesley Clover is a Private Holding Company with
assets in Technology, the Leisure sector and Commercial Real Estate. The
Technology Group focuses on 'new and deep technologies' that are likely to have
considerable impact and first mover advantage in the telecommunications,
computing and networking markets. www.wesleyclover.com