GiGstreem – a leading national provider of high-quality residential and commercial broadband networks – announced that it has raised $59 million in funding. The $59 million was raised in two separate transactions in the first quarter of 2023 with all proceeds coming from GiGstreem’s existing investor base.
This 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. The capital from this raise will help GiGstreem more rapidly scale its growth and deploy internet services to markets across the country. Crestline had 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 for completing the acquisition of a majority of assets from GigaMonster Networks, an Atlanta-based residential and commercial internet provider. This acquisition will accelerate the expansion of GiGstreem’s national footprint, more than doubling the number of assets utilizing the company’s technology while further growing the team and expanding local customer support and engineering capabilities.
Since launching in 2017, GiGstreem served as a premier internet service provider (ISP) for apartment buildings, residential communities, businesses, and events from coast to coast. And in multifamily properties, GiGstreem offers a superior internet experience by eliminating the need for residents to coordinate with local internet service providers, purchase a router, install it, etc. Plus GiGstreem’s hassle-free solution enables residents to enjoy a private network that is up and running within minutes and offers them fast and reliable connectivity anywhere on the property. The property-wide connectivity also benefits real estate operators by enabling smart devices and other technologies that further enhance the resident experience and ultimately the value of their property.
With more than 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. And 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 Gigstreem footprint and ensure better service to all its subscribers.
This deal comes on the heels of several other significant corporate developments at GiGstreem. And in August 2022, the firm announced the acquisition of Boston-based residential and commercial internet provider netBlazr, which immediately propelled GiGstreem to a position as a leading ISP for apartment owners and managers in the Greater Boston area. Last year, the firm also entered the Seattle, San Francisco, and Dallas markets, making significant strides in its corporate goal of offering high-speed WiFi in residential communities across the country.
KEY QUOTES:
“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.”
— Andrew Kusminsky, CEO of GiGstreem
“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.”
— Josh Gampp, Senior Vice President and Chief Technology Officer of UDR
