BPV Invests in Cbeyond Communications, Inc
ST. PETERSBURG, FL, January 6, 2005 – Ballast Point Ventures L.P. (“BPV”), a venture capital firm affiliated with Raymond James Financial, Inc., today announced it has closed an equity investment in Cbeyond Communications, Inc. (“Cbeyond”) of Atlanta, Georgia. BPV and Black Diamond Capital were the only new investors in the $17 million financing, which will be used to fund expansion of the business. Existing investors including Madison Dearborn Partners, VantagePoint Venture Partners, Battery Ventures and Cbeyond senior management also participated in the financing. According to data collected by Thompson Venture Economics, the investment in Cbeyond is the eighth largest venture capital investment in Georgia in 2004.
Founded in 1999, Cbeyond Communications provides communications services to small business customers utilizing a state-of-the-art Voice over Internet Protocol (VoIP) network. Cbeyond is the first broadband service provider with an end-to-end IP-based network, which allows Cbeyond to offer “big business” communications tools to small business customers at an affordable rate. Cbeyond serves over 15,000 small business customers in five major markets including Atlanta, Dallas-Ft. Worth, Denver, and Houston. The company began offering services in Chicago in December 2004.
Cbeyond Communications is led by Founder, President and Chief Executive Officer Jim Geiger, and Chief Financial Officer Bob Fugate. Geiger has spent his entire career in the telecommunications industry with prior experience at companies including Intermedia/Digex and Fibernet, and currently serves as chairman of the Association for Local Telecommunications Services, the facilities-based carriers’ national trade association.
“We are pleased to welcome Ballast Point Ventures to the Cbeyond team,” said Geiger. “The partners at BPV have an impressive background in the telecommunications industry and a successful track record of investing in high-growth private companies. We look forward to tapping their extensive network and knowledge base.”
“We are delighted to have the opportunity to invest in Cbeyond Communications,” remarked Paul Johan, Partner with Ballast Point Ventures. “Jim Geiger and his team have done an outstanding job of building an industry-leading communications company, and they have demonstrated the ability to manage rapid growth while maintaining a high level of customer satisfaction. Our investment in Cbeyond reflects the BPV strategy of providing expansion capital to rapidly growing, well-managed companies in the Southeast and Texas.”
About Cbeyond Communications, Inc.
Cbeyond Communications, a privately held, Atlanta-based Managed Services Provider, is a leader in the emerging local voice and broadband services market and the world’s first 100% Voice over Internet Protocol (VoIP) local phone network. Using VoIP and a 100% Cisco-powered network, Cbeyond delivers to small business customers in Atlanta, Chicago, Dallas-Ft. Worth, Denver and Houston an integrated package of high-quality local and long distance telephony services, high-speed Internet access and Internet-based applications for about the same price that small businesses typically pay for local and long distance service alone. For more information on Cbeyond Communications, visit cbeyond.net.
About Ballast Point Ventures, L.P.
Ballast Point Ventures, L.P. is a venture capital fund established to provide expansion capital for rapidly growing, privately owned companies in diverse industries, with a particular emphasis on companies located in Florida, the Southeast and Texas. The BPV partners have more than 60 years of combined experience investing in and building high-growth companies in a number of industries, including healthcare, business services, communications, technology, consumer products and specialty retail. The Fund seeks to make equity investments ranging in size from $1.0 million to $5.0 million. For more information, visit ballastpointventures.com.
