Optical equipment startup raises $45M

Matisse Networks has closed a $45 million funding round, bringing the optical networking equipment startup’s total funding to $80 million.

Initially funded in 2003, Matisse emerged from stealth mode last September with $21 million in funding.

The company’s products, which will be sold to large enterprises and service providers alike, combine optical and packet-based networking using a technology called “optical burst switching” (OBS). The system maps Ethernet traffic into optical packets, retuning itself in nanoseconds to map incoming packets into different wavelengths for optical transport. Because the system maximizes bandwidth utilization, Matisse has said, it is more efficient than more circuit-based optical networks. But unlike packet optical platforms from rivals such as Alcatel-Lucent and Fujitsu Network Communications, Matisse’s platform does not support Sonet traffic to allow a gradual migration from Sonet to packet-based architectures.

“We were able to show [investors] that our optical burst switching technology brings efficiencies in the network that current product offerings from large equipment vendors just cannot do,” said Sam Mathan, Matisse’s chief executive officer.

Matisse’s gear is currently being trialed by enterprise customers as well as at least one provider of carrier Ethernet services. It became generally available near the end of last year.

The C round announced today was led by Merrill Lynch PCG, which invested $35 million of it, and included all of the company’s other existing investors: Menlo Ventures, Monitor Ventures, Walden International and Woodside Fund.

Matisse will use its new funding to beef up sales and marketing efforts and support more manufacturing as it aims to gain market share.

Meanwhile, Matisse is searching for large equipment vendor partners to sell its wares worldwide.

The company has about 68 employees, about 20 of which are based in India.