Company News — Spotwave

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Spotwave closes operations as financing runs out

Bert Hill, The Ottawa Citizen
Published: Friday, December 21, 2007
Spotwave Wireless, an Ottawa startup that burned through $36 million in venture capital, has closed its doors.

The company had more than 70 employees last year, including 45 in Ottawa, when it obtained a last round of $12.5 million in financing.

A Toronto insolvency trustee has been appointed to wind up operations after Spotwave was placed in receivership. The Kanata offices were empty of staff yesterday and efforts to reach Spotwave officials were unsuccessful.

A person familiar with Spotwave finances said an acquisition is possible.

Spotwave made technology to improve cellular phone reception inside highrise buildings and garages.

Spotwave was successful in raising money during the early years, but with venture capital funding for Ottawa startups at its lowest point in a decade, its luck finally ran out.

Netistix, another startup, also recently closed its doors.

The six-year-old Spotwave was backed by Dow Corporate Venture Capital, Motorola, Newbury Ventures, VenGrowth Private Equity Partners, Primaxis Technology Ventures, Skypoint Capital, VentureLink Fund, The GrowthWorks Canadian Fund, and RBQ Ltd.

Bill Carlin, one of a number of people to hold title of the chief executive at Spotwave, had predicted in mid-2006 that an annual sales rate of $12 million would soon grow to $20 million, allowing Spotwave to prosper on its own revenues.

Founded in 2001 by engineers from the former Canadian Marconi -- now the CMC Electronics division of Esterline Corp. -- Spotwave turned "smart antenna" technology into a growing line of SpotCell signal-repeating hardware sold to major wireless companies in Canada, the U.S. and China.

© The Ottawa Citizen 2007

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