Deutsche Telekom AG, the venture capital division of Motorola Inc. T-Online Venture Fund will invest $16 million in Ruckus Wireless Inc., a wireless equipment manufacturer that designed Wi-Fi routers that can beam various forms of media around the home.
The new financing addition will increase total investment in Ruckus Wireless to $30 million. Other investors include Sequoia Capital, Sutter Hill Ventures, Investor AB and WK Technology Fund. California-based Rukus said it will use the financing to increase its current production levels, operations and sales and marketing worldwide.
â€œNew broadband digital services are driving the requirements for next generation home networks,â€ said Selina Lo president and CEO of Ruckus Wireless.
The companyâ€™s MediaFlex wireless router addresses the Wi-Fi equipment shortcomings which make it hard to transmit live TV and radio around the home or work place. The router is then plugged into a set-top box provided by the phone company. It then beams a signal to a laptop or PC with Wi-Fi facilitities.
â€œWe found Ruckus Wireless to be the only solution provider to have truly addressed the problem of moving multimedia around the home without new wiring,â€ said Petra Buchholz, fund manager for T-Online Venture Fund.