Gigstreem Raises $59M in Two Rounds for Managed Wi-Fi for Multifamily
Much of the second fund round is going toward an acquisition.
Gigstreem, which provides commercial and residential broadband networks, said it had raised $59 million in two rounds of funding, all coming from existing investors.
“The first transaction, which raised $19 million for Gigstreem, was led by Crestline Investors, Inc. (“Crestline”) and included participation from real estate technology venture capital firm RET Ventures and multifamily industry leaders Essex Property Trust and UDR, Inc. (‘UDR’); capital from this raise will help Gigstreem more rapidly scale its growth and deploy internet services to markets across the country,” the company said in a press release. “Crestline led an additional $40 million raise in March 2023 to provide Gigstreem with the strategic capital to pursue acquisition opportunities.”
The company provides Internet service to apartment buildings, residential communities, businesses, and events. Tenants go to Gigstreem and can get service, necessary equipment, and installation with “reliability connectivity anywhere on the property.”
“A significant portion of the capital raised in the second round was used to complete the acquisition of a majority of assets from GigaMonster Networks, an Atlanta-based residential and commercial internet provider,” the company said. “The acquisition will accelerate the expansion of Gigstreem’s national footprint, more than doubling the number of assets utilizing the company’s technology, while further growing the team and expanding local customer support and engineering capabilities.”
Gigstreem claims to currently service 52,000 apartment units across 28 markets. It hopes to add 40,000 additional units this year and, with the GigaMonster acquisition, expects to add six new markets and expand operations in a number of existing ones, including Texas, Georgia, Florida, and California.
The GigaMonster acquisition wasn’t the first the company had done. Last August, Gigstreem bought Boston-based residential and commercial internet provider netBlazr, opening the Boston market. In 2022, the company also entered Seattle, San Francisco, and Dallas markets.