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Vitesse Networks is launching a nationwide expansion that will give it a presence in more than 50 cities within a year.
The Minneapolis-based bandwidth provider, formerly called Jaffray Communications, has targeted Phoenix and 10 other cities for the first wave of its expansion.
To fund the aggressive network expansion, Vitesse has secured secondround venture financing from Des Moines, Iowa-based Equity Dynamics Inc. John Jaffray, Vitesse founder and chief executive, would not release the exact amount of cash the company has received except to say that "it is in the low seven figures."
The next infusion of cash, expected to be in the $15 million to $20 million range, will be used to continue the rollout, Jaffray said.
Vitesse's network is not coming cheaply, since it costs $400,000 per city to get up and running.
In addition to Phoenix, Vitesse plans to expand to Chicago, Kansas City, Denver, Dallas, Los Angeles, Las Vegas, Portland, Detroit, Miami and Boston. Those cities will be the first steps toward the company's...