Q9 Networks Inc., Monday, September 18th, 2000.
$26.5 million secured in venture capital funding
Toronto, ON – September 18, 2000 – Q9 Networks Inc., an Internet infrastructure provider, today announced it has secured $26.5 million in seed venture capital funding -- the largest ever in the Canadian high tech sector -- from two of Canada’s leading high-tech funds, J.L. Albright Venture Partners and VenGrowth Capital.
Q9 Networks will offer clients a world-class data centre with top-of-the-line customer service, reliability and 7x24 security, reporting and monitoring. Located in downtown Toronto, the Q9 Networks headquarters and flagship data centre will also provide ready physical access to the majority of its customers.
“The current Internet architecture in Canada is flawed,” says Osama Arafat, Chief Executive Officer, Q9 Networks. “At a time when high-speed connections are increasingly common, most of the connections between Internet users and Web sites are still routed through overloaded exchanges south of the border. Q9 leads the market in solving this critical infrastructure problem by dramatically reducing congestion between Internet users and Web sites.”
In building its network architecture, Q9 recognized that continuous and error-free connectivity is critical to the success of organizations with an Internet presence. To address this requirement, Q9 developed the fastest, most direct network architecture through an unparalleled number of transit connections and advanced Internet routing technology. “The Canadian Internet infrastructure market is going through explosive growth but is still relatively fragmented,” says Graham Matthews, a Director with VenGrowth. “J.L. Albright and VenGrowth were looking for investment opportunities in this market, and we strongly believe that Q9 Networks is best positioned to lead the field.”
According to Mary Macdonald, President of Macdonald and Associates, a leading authority on Canadian venture capital, the investment in Q9 Networks is the largest-ever seed round financing in the Canadian technology sector.
Q9 Networks is assembling a world-class management team and technical staff, with extensive expertise in Internet routing and network management. Since May 2000, the company has attracted more than 50 new hires, a remarkable achievement given the current shortage of IT staff with deep Internet expertise.
Investments in the company are being used to develop, deliver and expand Q9’s service offerings, as well as to communicate and market Q9’s vision.
About Q9 Networks Inc.
Q9 Networks is a leading provider of Internet infrastructure services for companies that rely on the Internet as a critical part of their business, such as large mainstream corporations, Internet-based businesses and Application Service Providers (ASPs). Q9 Network’s data centre, in the heart of downtown Toronto, offers a flexible, safe and scalable home for mission-critical servers. Its fully redundant and balanced network architecture delivers the shortest, fastest connection to Internet audiences. For more information, visit the Q9 Web site at www.Q9.com.
About J.L. Albright Venture Partners
Toronto-based J. L. Albright Venture Partners invests in emerging Internet, e-commerce, networking and software companies with exceptional prospects for growth, superior technology and a sustainable competitive advantage. For more information visit www.jlaventures.com.
About VenGrowth
VenGrowth is one of Canada's most experienced and respected venture capital management groups, widely known and trusted in the industry. VenGrowth's core strength lies in its highly experienced investment management team. The company has thirteen investment professionals whom collectively have over 100 years venture capital expertise. Investee companies benefit from VenGrowth's substantial experience, resources, and hands-on investment style, which has served dozens of Canadian businesses during the past two decades. For more information, visit: www.vengrowth.com.
For more information, please contact:
David Chaloner
Q9 Networks Inc.
(416) 365-7025
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Andrea Ellison
Senior Consultant
Environics Communications
(416) 920-9000, ext. 289
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