Gains $10 Million Investment
Crosslink Capital funding will bolster Internet exchange's cash
April 30, 2003 -- Internet exchange service provider Equinix,
Inc. said today that it has received a $10 million investment
from Crosslink Capital, a private equity investment firm.
officials said the Crosslink investment, combined with last year's
$30 million cash infusion from Singapore Technologies Telemedia
should allow the company to fund operations until it becomes profitable.
the past six months, Equinix has transformed its financial standing,"
said Peter Van Camp, CEO of Equinix. "The investments and cash
that Equinix acquired at the end of last year allowed the company
to significantly reduce outstanding debt and strengthen the balance
With this new investment, Equinix will significantly increase
operating cash reserves to a comfortable level for the long run,"
Van Camp added. "
a part of the transaction, which is scheduled to close in June,
Crosslink Capital partner Gary Hromadko will join the Equinix
board of directors. The closing is subject to the approval of
the company's stockholders and SEC clearance. Equinix said a proxy
statement will be filed today with the SEC to seek shareholder
approval of the issuance of shares to Crosslink.
has many of the qualities that we look for in an investment opportunity:
a position of market leadership, strong customer traction with
well-respected companies, a demonstrated track record of success,
and the vision, management team and financial stability to continue
as a long-term leader," said Hromadko.
Capital has invested in emerging technology companies since
1989. Currently, its venture investing activities are focused
on the software, core technology/semiconductor and business services
based in Mountain View, Calif., provides core Internet exchange
services that allow Internet infrastructure companies, enterprises
and content providers to grow, manage and control their networks.