Swyx Secures $9M Funding

IP Telephony vendor Swyx has announced the completion of their second stage funding of $9.3 M led by new investors ABN-Amro Capital and T-Systems Venture Fund (T-Systems’ Venture Capital arm managed by T-Venture), with additional investment also provided by Swyx’s primary investor, Wellington Partners, together with a number of existing private shareholders in the company.

In addition, Swyx has also announced the appointment of a number of key industry players to its Supervisory Board.

According to Swyx, the additional financing will help the company to further expand its product offer and market reach into both existing and new key markets and geographies, meeting the growing demand for IP telephony from SMEs across key European markets. According to key industry analysts, the IP Telephony market for software-based IP Telephony solutions will grow rapidly over the next five years replacing traditional hardware-based telephony systems, and Swyx has already taken a market-leading position in a number of SME markets across Europe for IP-PBX during 2005 including Germany, Switzerland, Austria, the UK and the Netherlands. (Source: MZA, The European Corded PBX/IP-PBX Market Full 2004 Shipment Review)

Swyx CEO Gunter Junk commented, “We have already invested heavily into R&D and operational infrastructure of the company. The additional funding will be used to further underwrite our expansion, invest in new technologies and to further re-inforce Swyx as the leading innovator and brand for IP telephony solutions for SMEs. We are already seeing the fruits of our initial investment strategy with revenues for 2005 expected to be at least twice those of the previous year. Swyx’s unique value proposition of a software-based product for IP Telephony has been shown to dramatically improve the productivity and profitability of both the channel and the end customer, and it is this proposition that is helping to forge success within the European Market.”

Dave Smith, SVP worldwide Marketing for Swyx, further commented: “Our key investors have recognised that Swyx has already secured both a unique and highly lucrative position as the leading provider of IP Telephony to the European SME market. We already have a strong market presence in Germany, Switzerland, Austria, Scandinavia & Benelux, a close and successful relationship with Deutsche Telekom & T-Systems, and we have recently begun significant investment in the UK as a key market for Swyx by basing our Worldwide Marketing and Northern European Sales operations from the UK. Moving forward, this additional investment will help us to gain further market share in terms of scaling into these markets, and will help us to reinforce the brand, the product and value proposition across our key segments and territories”.