In 1999 a group of forward-thinking engineers came together to take-on networking heavyweights Cisco and Foundry Networks and develop the first true line rate 10 Gigabit Ethernet switching and routing solution. Taking on the industry incumbents was no easy task. But Force10 Networks – as the founders came to call the company – was up to the challenge.

Their idea attracted attention from top-tier investors, including NEA, USVP, Worldview Technology Partners, Meritech Capital Partners, among others. With this venture backing behind them, Force 10 was able to pull together the team and resources required to bring their solution to market. But in addition to its human capital requirements, Force10 had substantial capital equipment needs. Utilizing precious equity dollars for these expenditures was not the approach Force10 wanted to take.

“To get off the ground, we had to make a sizeable investment in capital equipment. Yet using VC funds for this purpose came at too high of a price. We didn’t want to accept the further dilution that would have come with using equity dollars,” said Ralph Harms, CFO, Force 10 Networks. “Alternatively, an equipment loan from Lighthouse made sense. We could finance the equipment we needed with minimal impact on company ownership from warrant coverage on the loan.”

Since their founding, Force10 has turned to Lighthouse for three separate financing rounds to assist in their equipment needs. “By combining the Lighthouse loan with our VC funds, we were able to optimize our cash flow. The equipment loans enabled us to extend our runway between equity financing rounds so that we could reach key milestones in product development that translated to an up tick in valuation at the next financing round.”

Force10 Network’s approach is paying off. Over the last five years, the company has made huge strides in its goal toward revolutionizing the networking world. By combining engineering innovation with smart finance practices, Force10 is now beginning to gain the huge market momentum they envisioned back in 1999. Already the company has one-third market share of the line rate 10 gigabit Ethernet market – outpacing the industry giants and gaining the confidence of dozens of Fortune 1000 companies and government agencies worldwide.