Force10 shows benefits of steady backing

Updated

Force10 Networks, the Silicon Valley (Milpitas) 10 Gigabit switch and router maker, has raked in $40.6 million in a fifth round of venture capital backing.

Investors in the company, including Crosslink Capital, Morgenthaler Ventures, New Enterprise Associates and U.S. Venture Partners, have shown how steady backing — even through the panic-ridden days of the post-bubble era — can reap rewards at the end of the day (or, we should say cautiously, looks set to reap rewards, based on the current bullish comments coming from investors about its future and these numerous announcements). This is one of those networking systems companies that once had many competitors, but many of which were abandoned in the era of fear, and because of the massive amounts these sorts of companies tend to soak up.

Force10 has garnered more than $300 million, and it is toying now with going public in 2006. The story was first reported by PE Week.