DCM: The Successful Entrepreneur’s Choice.
Arroyo Video Solutions had been recognized as an emerging leader in providing Video on Demand solutions utilizing industry-standard servers. Arroyo’s customers consisted of operators and service providers around the world, including leading U.S. cable operators Comcast, Time Warner Cable and Charter Communications.
DCM’s opportunity to invest in Arroyo arose from multiple entrepreneur and LP relationships cultivated by DCM over the years. Our initial introduction to Arroyo came to Dixon Doll via Eric Benhamou, the former CEO and current Chairman of the Board at 3Com Corporation (a DCM limited partner) and also former Chairman of Palm, Inc. DCM’s relationship with Eric began when Dixon was a board member and Eric was the VP of Engineering at Bridge Communications (later acquired by 3Com). In addition, Carl Amdahl has a long standing relationship with two of the founders of Arroyo, Paul Sherer and Drew Major. The successful combination of these relationships facilitated DCM’s investment in the company and supports our belief that there is tremendous value in such relationships to access deal flow, close competitive deals and ultimately create value for our investors. Carl led the first round venture investment in Arroyo and continued to actively assist the company through the Cisco acquisition.
Cisco Systems, Inc. (Nasdaq: CSCO) acquired Arroyo Video Solutions for $92 million in cash. The agreement was finalized on September 13, 2006. Arroyo’s innovative video delivery solutions complement Cisco’s acquisition of Scientific Atlanta to provide complete end-to-end video solutions.