Situation
Radiant was established in 1997 to develop a unique new "mesh" network system for broadband fixed wireless networks that solves many of the economic and performance limitations of current point-to-multipoint systems.
Radiant had previously raised $8 million of start-up financing in 1997 and 1998, and engaged ARC Associates in 1999 to raise further significant financing to accelerate its development programme through to the launch of its first commercial products.
Approach
Together with Radiant management, ARC Associates developed the business plan, wrote the information memorandum and prepared presentation materials for investor discussions.
A number of possible venture capital funding sources were identified in the UK, Europe and the US. ARC executed an extensive call programme to each of these investor groups, and managed the investor presentations and initial discussions.
From the group of interested investors that emerged from the initial discussions, ARC Associates managed the formation of the most attractive syndicate for Radiant, helped negotiate the key terms of the investment and assisted with the due diligence process through to closing of the transaction.
The Transaction
On 6th April 2000, ARC Associates successfully raised $20 million from Advent Venture Partners, Intel Capital, Kohlberg Kravis Roberts & Co (KKR) and Sandler Capital.