It looks like it’s all brought online now, but network sourcing has stubbornly remained a negotiation in person or over the phone. Early-stage New York-based startup Lightyear decided to change that last year, and the company today announced a $ 13.1 million Series A.
The round was led by Ridge Ventures with participation from Zigg Capital and numerous individual investors. Today’s investment follows a $ 3.7 million fundraising round last October, bringing the total raised to $ 16.8 million.
CEO and Co-Founder Dennis Thankachan said the company has been successful in winning customers by offering a new way to get network resources, which was a big improvement over manual trading.
“Last year, we launched Lightyear, the first tool for purchasing your telecom infrastructure on the Web. And while it has been difficult to change behaviors and the way businesses do things for years, the status quo in telecommunications has been zero transparency, no way of doing things on the web, and often an interface with very, very large suppliers where you don’t have any negotiations. leverage even if you are a large company. This experience was so bad that many companies were extremely happy to see what we were bringing to market, ”he said.
What Lightyear offers is an online marketplace where businesses can interact with suppliers and get a range of quotes to make a more informed purchasing decision. The company has spent a lot of time improving the product since last October, when you could set up some basic stuff, get a quote, and Lightyear would help you buy it.
Now, Thankachan says the solution covers the full lifecycle of services, including configuring a wider range of services, managing the installation of services, and reducing delays and errors in services. facilities. Finally, they help track and manage network inventory and can automate the renewal of an entire group of services.
This has resulted in 4X growth in just nine months since the last round. Additionally, the company had relationships with 400 suppliers in October and has grown to 500 today. The startup also doubled the number of employees to around 20.
Thankachan says that as a person of color he is particularly aware of building a diverse and inclusive culture. “I am a person of color, who has been in the minority in different work environments in the past, and I know what it feels like and how frustrating it can be for someone who feels their voice is missing. not heard. […] So I think we can start to build a culture that isn’t necessarily the norm in [the telecommunications industry] trying to give opportunities [underrepresented] people, ”he said.
Ridge Ventures partner Yousuf Khan, who is leading the tour and will join the board under the terms of the deal, said that as a former CIO he found Lightyear’s approach very appealing.
“As a former CIO and person who has led global technology operations, it is refreshing to see Lightyear transform the way business infrastructure is purchased… I wish Lightyear had existed during my years as CIO”, Khan said in a statement.