SoftBank, Akamai invest in mobile broadband tech developer Saguna Networks
The investment, announced on Thursday, will give Israel-based firm Saguna Networks the capital required to expand its presence in North America, Asia and Europe as well as accelerate product development.
Financial details were not disclosed.
Saguna Networks is the developer of an open cloud computing platform within the Radio Access Network (RAN). The Saguna CODS Mobile Edge Computing platform improves mobile network speeds while "improving network economics and reducing congestion," according to the company. The platform creates fast-track connections between Internet content providers and web applications, and provides firms with real-time traffic feedback.
"We are delighted that Saguna Networks will be SoftBank Ventures Korea Corp's (SBVK) first investment in Israel. Driven by users' needs to feel constantly connected, mobile traffic is set to undergo explosive growth in the next 5 years with operators increasingly turning to technology to address bottlenecks," said Daniel Kang, COO of SBVK. "Saguna's -Open-RAN is a compelling solution enabling operators to meet their critical future needs."
As part of the investment, SBVK's venture partner, Ben Weiss, will join Saguna's board as an observer.
The investment makes sense for both SBVK and Akamai as providers of mobile broadband and cloud services. The West demands more access to mobile Internet access and there are heavier requirements for spectrum than ever, and so any startup which can make network economics more efficient and reduce congestion or bottlenecks -- where networks slow down due to traffic levels -- is a worthwhile investment.
SoftBank Ventures Korea is a venture capital arm of SoftBank Group based in Seoul, Korea, and has invested approximately $338 million across 175 startup companies to date.
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