Mesh Networking Firm Millennial Net Closes $15M Series B Capital

Wireless mesh networking firm Millennial Net
Inc. said it has closed $15 million in Series B
capital, in what might be its last round.

"If the market grows very fast over the next
three years, this could be the last round," said
Chief Executive Andy May, who joined the company
in September 2003. He believes the start-up may
reach profitability as early as 2006.

The company is selling its i-Bean networking
devices, routers, and gateways, all of which form
a mesh network that can transmit data wirelessly.
Because of the routers, the data has multiple paths
to get to each gateway, unlike most radio systems,
which are point-to-point.

The i-Beans, which are about the size of a thumb,
can last 10 years on a battery and sell for between
$50 and $150 each.

May said Millennial Net will use its capital
to increase its operations in sales, marketing,
manufacturing and engineering. The company has 30
employees and will hire another 40 within a year.
A large portion of the firm's resources will go
to snagging new customers.

"The adoption curve for customers is one of
the biggest unknowns at this point," said May, explaining
that Millennial Net is going after a still developing
market. Ember Corp., Crossbow Technology Inc. and
Dust Inc. are also start-ups hoping to take a piece
of the sensor-based mesh networking market.

Customers, which come from the medical, building
automation, and industrial automation sectors, started
signing on with Cambridge, Mass.-based Millennial
Net about nine months ago. May declined to say how
many orders customers have placed, but said the
firm has shipped samples of its products to more
than 100 companies. Most customers use between 10
and 300 i-Beans in a network.

Millennial Net believes that building automation
will be a large market because its mesh networking
system can replace the wired sensor networks now
employed in buildings for temperature and humidity
control. Today wiring a large building can be expensive,
much more costly than the sensors the wires connect.
Millennial Net argues that its wireless technology
is a cheaper alternative that also happens to be
small and reliable.

The firm also targets companies making medical
equipment, with the goal of wirelessly connecting
the equipment and computers used in hospitals.


While Millenial Net develops nearly all the
hardware and software it sells, it doesn't make
its own radios. In addition, the sensors that are
used in conjunction with the iBeans are also supplied
by customers themselves.
http://www.millennial.net

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