Celox Networks announced Monday that it has raised $80 million for its third round of financing, which was led by Putnam Investments and Firsthand Capital Management, bringing the telecom equipment maker's total funding to $155 million. The company makes a switch for telecom carriers to use in urban communications networks. The equipment helps organize data traffic coming off and on long-haul networks, which send large amounts of data between cities. Celox's equipment is now being tested in AT&T's lab, and the company will also start lab trials with two other carriers starting in August and in the fall, respectively, with the intent to close sales and ship products to customers by the end of the year.
ABS Ventures contributed to Celox's third round and also led the Southborough, Mass-based company's $68 million second round in May of last year. Apex Investment Partners and Bay Partners headed-up the company's first round of $7 million in June of 1999 and also chipped in for the third round. For the third round, Putnam and Firsthand joined other new investors such as Dain Rauscher Wessels, J.P. Morgan Capital, Pacesetter Capital, SG Cowen and Thomas Weisel Partners. Celox considers Lucent Technologies, Nortel Networks, Redback Networks and CoSine Communications as competitors.