UPD Hyperoptic Secure £50m to Expand UK 1Gbps Fibre Broadband Coverage

Urban ISP Hyperoptic, which offers “hyper-sonic” FTTH/B based broadband speeds of up to 1000Mbps (Megabits) to 20,000 homes in London (i.e. high-rise buildings and apartment blocks), has secured a new investment of £50m to help expand into 10 new UK cities by the end of 2014 (80,000 homes).

Quantum Strategic Partners Ltd., a private investment fund managed by Soros Fund Management LLC (George Soros) that focuses on capital-intensive start-ups, buyouts, and growth equity transactions, has committed the new money in order to help Hyperoptic achieve its original goal of making their fibre optic services available to 500,000 homes within the next 5 years (2018).

The investment fund itself typically seeks to acquire “world-class assets that can generate strong and growing cash flows” and, as a result of today’s deal, two Soros directors will join Hyperoptic’s board (Waldemar Szlezak and Joshua Ho-Walker).

Boris Ivanovic, Hyperoptic’s Chairman and Co-Founder, said:

“Today’s investment is a resounding vote of confidence in both our business model and the bright prospects for FTTH technology in the UK. As momentum continues to build for ‘smart cities’ and an increasingly technology-fuelled economy and society, the need to future proof our infrastructure has become absolutely critical and Hyperoptic will play a key role in doing just that.”

Bruno Ducharme, Hyperoptic’s New non-Executive Director, said:

“In Hyperoptic, I see an exceptional team of entrepreneurs in the ISP marketplace, a proven business model to deliver cutting-edge broadband technology, and a big opportunity to meet the growing appetite for superfast broadband. I am pleased to play a part in supporting their rapid growth trajectory through this long-term infrastructure investment.”

It’s understood that Hyperoptic’s existing directors will continue to retain their majority control, although Soros is now said to hold a substantial stake in the business. Ivanovic also confirmed the ISPs worst kept secret and revealed plans to launch a pay-tv service.

The confirmation follows Hyperoptic’s recruitment of BTVision’s (IPTV) former Head of Propositions, Darren Shenkin, in March. The ISP has always planned to offer a TV solution, which will probably make use of the YouView platform.

UPDATE 9:07am

Added some more comments from Hyperoptic’s boss.