Pedestal elevates with $20 million funding round

Pedestal Networks today is announcing that it has completed a $20 million series C funding round that will take the access vendor through 2005.

The round, which brings the company’s total funding up to $34 million, was co-led by new investor Duff Ackerman & Goodrich (DAG) along with existing investors Benchmark, Doll Capital Management and Skymoon Ventures. As part of the new funding, John Cadeddu, partner at DAG, will join the Pedestal Board of Directors.

Pedestal’s Universal Broadband Server product line has gotten good traction in the independent telco market, said Greg Daily, CEO of the Fremont, Cal.-based company. However, the new funding will be used in move the company into several new markets.

"We’re going to be expanding internationally this year," Daily said.

And while Daily won’t talk specifics, Asian markets that have been deploying VDSL would appear to be a natural fit for the next generation of UBS products. Domestically, the company would appear now set to move into a video role.

"I’m talking about picking up higher speeds and staying ahead of the curve," he said. "We’ve tried to focus ourselves in the data space, but clearly our existing product is able to do more."

For DAG, the investment in Pedestal is representative of a renaissance in VC activity among telecom vendors. This time around, though, VCs are promising to be more selective.

"It’s not just ‘Can you put a pretty face out there and tell a good story,’" Cadeddu said. "What you like to see are people that have succeeded before without the big budget."