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Mahi nets $75 million round

Mahi Networks announces a $75 million fourth-round investment, bringing the company's total funding to more than $185 million.

Mahi Networks announced Wednesday that it raised $75 million in a fourth-round investment, bringing the company's total funding to more than $185 million.

The Petaluma, Calif.-based company makes optical equipment for metropolitan telecommunications networks, which handles voice and data traffic within urban areas. It plans to use the funding to introduce its gear to the market.

Mahi's main product, the Mi7, is in lab trials with four telecommunications carriers. The company expects to make revenue from the switch this summer, when carriers will also use the gear to carry live customer traffic on a limited basis.

New investors in the financing round include Rho Ventures, Oak Investment Partners, Jerusalem Venture Partners, Wasserstein Ventures and St. Paul Venture Capital, which led the round and gained a seat on the company's board of directors. Previous Mahi investors that also participated in the round include Berkeley International Capital, Mitsui, Anschutz Investment and Van Wagoner Capital Management.

Mahi was founded in 1999 and closed its first round of funding in September of that year for $7.13 million. The company closed its $64.5 million second round a year later and raised $40 million in November 2001.

Mahi appointed board member Chris Rust as its chief executive officer last March. Rust was also a partner at Sequoia Capital, a previous Mahi investor. Benchmark Capital and Goldman Sachs have also participated in previous funding rounds.