Tech Startup Raises Venture Round

Orange County Business Journal, Apr 20-Apr 26, 2009 by Tolkoff, Sarah

Newport Beach-based InteliCloud Inc., a startup maker of data networking devices, said last week it closed an initial round of venture funding from Aliso Viejo-based Media One Direct LLC.

InteliCloud Chief Executive Ken Hubbard didn't disclose the amount of funding, but said it was less than $10 million. Media One Direct Chief Executive Charles Overton is set to get a seat on InteliCloud's board.

InteliCloud, which counts half a dozen local workers, makes what it calls a "network in a box."

"We took four key areas of a network-the processing, storage, communications and management software-and tightly integrated them into a single box," Hubbard said.

The box saves space and power and allows telecommunication companies and others to serve more customers and get the most out of their networks, he said.

The company works with a U.S.-based contract manufacturer to make and assemble the box.

It plans to use the venture money to expand its sales and marketing team.

InteliCloud plans to hire some 20 workers in the next eight months or so, Hubbard said.

InteliCloud got started in 2007 with a customer win from Vircas LLC, a maker of an online high-definition streaming video player.

It was incorporated in January of last year. InteliCloud's target customers include any company that pushes out a lot of voice and video data, including telecoms, cable companies and big makers of online video games.

The company said it's currently running several pilot programs with potential customers.

-Sarah Tolkoff