Gigstreem, a national provider of residential and commercial broadband networks, this week announced that it has raised $59 million in funding. The $59 million capital infusion was raised in two separate transactions in Q1’23, with all proceeds coming from Gigstreem’s existing investor base.
The first transaction, which raised $19 million for Gigstreem, was led by Crestline Investors, Inc. and included participation from real estate technology venture capital firm RET Ventures and multifamily industry leaders Essex Property Trust and UDR, Inc.
According to information in a press release, capital from this raise will help Gigstreem more rapidly scale its growth and deploy internet services to markets across the country.
Josh Gampp, SVP and CTO of UDR, remarked:
“Providing our residents with integral services like reliable, ubiquitous WiFi greatly enhances their living experience and serves as a foundational component to the functionality of numerous community features we offer. Equipping communities with consistent, uninterrupted service is a benefit to both residents and our property management teams and gives us a competitive advantage in today’s market. Gigstreem has the engineering capabilities and ability to scale to ensure UDR communities get the best internet connectivity possible.”
For its part, Crestline led an additional $40 million funding round in March 2023 to provide Gigstreem with the strategic capital to pursue acquisition opportunities.
GigaMonster Networks acquisition
A significant portion of the capital raised in the second round was used to complete Gigstreem's acquisition of a majority of assets from GigaMonster Networks, an Atlanta-based residential and commercial internet provider.
The acquisition will accelerate the expansion of Gigstreem's national footprint, more than doubling the number of assets utilizing the company’s technology platform, while further growing the team and expanding local customer support and engineering capabilities.
Andrew Kusminsky, CEO of Gigstreem, commented:
"Over the past few years, the limitations of traditional ISPs have become apparent, and this funding and strategic acquisition position us to continue scaling our superior service. For years GigaMonster has been a formidable force in the industry boasting a phenomenal base of owner relationships, and we are thrilled to capitalize on this opportunity to acquire many of their marquee assets across the country. Our goal is to become the leading provider of ubiquitous, community-wide Wi-Fi in the United States, and this transaction brings us another step closer to achieving that goal."
Gigstreem's value proposition
Since its launch in 2017, Gigstreem has served as a premier internet service provider (ISP) for apartment buildings, residential communities, businesses and events from coast to coast.
In multifamily properties, Gigstreem says it offers a superior internet experience by eliminating the need for residents to coordinate with local ISPs, purchase a router, install it, etc.
"Gigstreem’s hassle-free solution allows residents to enjoy a private network that is up and running within minutes and offers them fast and reliable connectivity anywhere on the property," states the company's press release, which adds, "Property-wide connectivity also benefits real estate operators by enabling smart devices and other technologies that further enhance resident experience and ultimately the value of their property."
With over 100 new properties onboarded through the strategic acquisition, Gigstreem now services a total of 52,000 apartment units spanning 28 markets across the U.S., and plans to launch operations in some 40,000 additional apartments in 2023.
Additionally, in securing a significant portion of Gigamonster’s assets and subscribers, Gigstreem will expand its presence into 6 new markets while increasing its market share in several existing markets, including Texas, Florida, California, Washington, and Georgia.
The integration of these assets with Gigstreem’s purpose-built network and dedicated team will further strengthen the company's footprint and ensure better service to all its subscribers, the company's statement concluded.
The new capital funding transaction comes on the heels of several other significant corporate developments at Gigstreem.
In August 2022, the firm announced the acquisition of Boston-based residential and commercial internet provider netBlazr, which immediately propelled the company to a position as a leading ISP for apartment owners and managers in the Greater Boston area.
Last year, Gigstreem also entered the Seattle, San Francisco, and Dallas markets, making significant strides in its corporate goal of offering high-speed managed WiFi services in residential communities across the country.
For more information, visit www.gigstreem.com.