Arcadian Networks Raising $85 MillionJustin Hibbard
Serial entrepreneur Davidi Gilo is raising a whopping $85 million in a first round of funding for his new Woodside, Calif.-based networking communications startup, Arcadian Networks, Inc., according to a source familiar with the plans. Arcadian's management team includes Gil Perez, a former executive at business software company Top Tier, which SAP AG bought for $400 million in 2001. Gilo has the kind of track record that draws VCs like flies, so the valuation on this concern is likely to get bid up.
Most recently, Gilo has served as chairman and CEO of wireless broadband gear maker Vyyo Inc., which went public in 2000 and saw its stock rocket to $129/share before falling to Earth in 2001. His previous VC-backed ventures include wireless chipmakers DSP Group (Nasdaq:DSPG) and DSP Communications, Inc. (acquired by Intel Corp. for $1.7 billion in 1999), digital imaging company Stentor Inc. (acquired by Philips Electronics NV for $280 million last year), disk-drive component maker Zen Research PLC (went public in 2000 and was taken private by Gilo for $27 million in 2002), and video chipmaker Nogatech Inc. (went public in 2000 and was acquired in the same year by Zoran Corp. for $158 million).
We have no word yet on which VCs may be funding Arcadian. Gilo has his own VC firm, Gilo Ventures, which is likely to participate. In the past, the firm has co-invested with Bessemer Venture Partners, Carmel Ventures, Gemini Israel Funds, Israel Infinity Venture Capital Management Ltd., Giza Venture Capital, and Syntek Capital AG, to name a few.