Gigstreem, a national provider of residential and commercial broadband networks, has raised $59 million in funding in two separate transactions from its existing investor base in the first quarter.
The company, based in Tysons Corner, Virginia, serves as an internet service provider for multifamily buildings, residential communities, businesses, and events across the nation. In multifamily properties, it eliminates the need for residents to coordinate with local internet service providers, purchase a router, and then install it, instead providing a hassle-free solution that allows the setup of a private network within minutes.
The first transaction, which was led by Crestline Investors and included real estate technology venture capital firm RET Ventures and multifamily owners Essex Property Trust and UDR, raised $19 million that will help Gigstreem more rapidly scale its growth and deploy internet services to markets nationwide.
The second transaction, also led by Crestline Investors, raised $40 million in March to provide Gigstreem with the capital to pursue acquisition opportunities. A significant portion of that raise was used to complete the acquisition of a majority of assets from GigaMonster Networks, a residential and commercial internet provider based in Atlanta.
According to Gigstreem, the acquisition will accelerate the growth of the company’s national footprint, more than doubling the number of assets utilizing its technology, and further expanding its team as well as local customer support and engineering capabilities.
“Over the past few years, the limitations of traditional internet service providers have become apparent, and this funding and strategic acquisition position us to continue scaling our superior service,” said Gigstreem CEO Andrew Kusminsky. “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, communitywide Wi-Fi in the U.S., and this transaction brings us another step closer to achieving that goal.”
This transaction follows several other corporate developments. The company announced the acquisition of netBlazr, a Boston-based residential and commercial internet provider, in August 2022. It also entered the Dallas, San Francisco, and Seattle markets last year, making strides in its corporate goal of offering high-speed Wi-Fi in residential communities across the nation.
Through the latest strategic acquisition, with over 100 new properties onboarded, Gigstreem, which launched in 2017, services 52,000 apartments in 28 markets. In addition, the platform plans to launch operations in approximately 40,000 additional apartments this year. In securing a significant portion of GigaMonster’s assets and subscribers, Gigstreem will expand into six new markets while increasing its share in several existing states, including California, Florida, Georgia, Texas, and Washington.
“Providing our residents with integral services like reliable, ubiquitous Wi-Fi greatly enhances their living experience and serves as a foundational component to the functionality of numerous community features we offer,” said UDR senior vice president and chief technology officer Josh Gampp. “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.”
