Gigstreem, a start-up based in Tyson Corners, Virginia, announed $59 million in funding for its residential and commercial broadband networks.
Since its launch in 2017, Gigstreem has served as a premier internet service provider (ISP) for apartment buildings, residential communities, businesses and events.
The $59 million 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, and included participation from real estate technology venture capital firm RET Ventures and multifamily industry leaders Essex Property Trust and UDR, Inc. (“UDR”); capital from this raise will help Gigstreem more rapidly scale its growth and deploy internet services to markets across the country. Crestline led an additional $40 million raise in March 2023 to provide Gigstreem with the strategic capital to pursue acquisition opportunities.
A significant portion of the capital raised in the second round was used to complete the acquisition of a majority of assets from GigaMonster Networks, an Atlanta-based residential and commercial internet provider.
With over 100 new properties onboarded through the strategic acquisition, Gigstreem now services a total of 52,000 apartment units spanning 28 markets nationwide, and the platform plans to launch operations in some 40,000 additional apartments in 2023
"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,” said Andrew Kusminsky, CEO of Gigstreem. “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."
