By Allan Maurer
HERNDON, VA – Rivulet Communications, whose technology enables flawless HD medical video on the hospital IP network, has raised an $11.5 million round from ATA Ventures, Menlo Ventures, Performance Equity Management and Scorpion Capital Partners.
The company says the funds will be used to invest in market and sales development activities targeted toward integrators and prospects, and also to deliver a next-generation product line to fuel substantial growth.
The company raised a total of $41.5 million, including a $20 million Series B round in March 2007 led by ATA Ventures and included Performance Equity Management and Scorpion Capital Partners with participation from Menlo. It raised a $15 million first round in 2007.
The company won several patents for its technologies, which include its wide-area network Internet Protocol quality of service technology in 2008.
Its technology helps high priority network traffic avoid bottlenecks, speeding real-time traffic and maintaining video quality. It can be used on existing networks.
“In these tough economic times, the healthcare industry is investing in initiatives to improve efficiency, and Rivulet has unique offerings to serve critical requirements,” said Ed Kennedy, CEO of Rivulet Communications.
“Working with leading operating room integration firms, Rivulet’s market access has expanded dramatically in the past year.”
Kennedy tells TechJournal South the company, founded in 2004, has about 40 employees. It adjusted its staff size down last year but is doing some hiring on the heels of this investment.
Kennedy and most of the management team are veterans of Chicago-based Tellebs and of Ocular Networks, which Kennedy helped found and Tellebs purchased.
Kennedy notes that at one time, up to 80 percent of the calls made in the United States went over Tellebs equipment.
Although the company has marketed its products to several sectors, it is now focused on the healthcare market, Kennedy says.
“Healthcare is a gigantic and resilient market,” he says. “They need this because video use is exploding in healthcare.
“Not just in the operating room for endoscopic surgeries, but also to share and store video. Doctors are using video for post-operative care, consultations and to make rounds without needing to be in the hospital. It frees them geographically from actually needing to be there.”
Rivulet will be rolling out several product announcements that Kennedy says will increase its footprint in the healthcare space.
It will be at the AORN 56th Annual Congress, March 14 – 19, 2009, McCormick Place West Building, Chicago, Illinois.
Online: www.rivulet.com
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