Rho Ventures: 2004 News

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InnerWireless Gets $12M In Series B,
Says Johnson Controls Is Investor

By Rachael Nielsen
May 12, 2004

InnerWireless, a provider of in-building wireless systems, has raised $12 million in a Series B round of funding.

Publicly traded Johnson Controls Inc., a Milwaukee-based maker of automotive systems, contributed $4 million to the round, which closed in late January. Its contribution is part of a partnership with InnerWireless, formed in March, to offer an in-building distribution system providing wireless coverage for voice and data services.

The remaining $8 million came from the start-up's existing investors. Those are Rho Ventures, Sevin Rosen Funds, TAMC Ltd. and Massey Burch Capital Corp.; and Genesis Campus, STARTech Foundation and HO2 Partners. HO2 announced the Series B.

InnerWireless' funding is now $38 million. Johnson Controls will have a seat on the board as a result of the round, according to Dan Owen, a general partner at HO2 and a director at InnerWireless.

Owen said the InnerWireless investment by Johnson is part of a "broader strategic" relationship between the companies. Johnson is already a reseller of InnerWireless products. Owen said now it also will be an InnerWireless customer.
The Series B funding will be used for expansion, according to Owen and Tim Kinnear, chief financial officer at InnerWireless. In a separate interview, Kinnear said the funding also will provide "working capital" to support business relationships with Johnson and others.

http://www.innerwireless.com