It’s Your Runway! Rent the Runway Is Redefining Your Closet Any or Everyday

As an MBA student, Jennifer Hyman had a deceptively simple idea that she successfully built into a powerful logistics and technology company – proving the power of web-based sharing models before Airbnb, Uber, and others came on the scene. TCV Founding General Partner and Rent the Runway board member Rick Kimball recently had a chance to talk with her about the journey from her original vision to the launch of Rent the Runway and making the “closet in the cloud” a reality for women across the U.S. Topics covered include:

  • Establishing a new category that helped create the sharing economy
  • Convincing her board to fund an extension of the original concept
  • Why your closet might soon reside in the cloud

 

Rick Kimball: Jennifer, most people know Rent the Runway, but can you share with us how the company came about?

Jennifer Hyman: My sister was getting ready to attend a wedding. She wanted to wear something new and aspirational. So she went out and purchased an extravagant dress that she knew she would likely wear only once and put her into credit card debt. This was a light-bulb moment for me.

I thought about separating wearing from ownership. My sister wanted the experience of wearing something different and aspirational – and that had nothing to do with actually owning the garment. Once you separate wearing from owning, there is a huge opportunity to totally disrupt the way we think about getting dressed.

Rick Kimball: What were your first steps in realizing your idea?

Jennifer Hyman: The first step was realizing that an initial idea isn’t a business. In our case, the idea needed to be iterated both for its customer value proposition as well as its supplier value proposition. We spent the next six months doing a series of iterative minimum viable product tests to assess whether we were on to a good idea or whether it was appealing only to us. When we launched, we had 100,000 people sign up for Rent the Runway in the first week of our business. So demand was not going to be the challenge.

Rick Kimball: What were the challenges?

Jennifer Hyman: Our business model requires our customers to return every single item we ship out. No one in retail does that. Plenty of companies have some reverse logistics capability for product returns, but we were doing reverse logistics as our entire business model, for expensive luxury products. There was no technology you could buy when we launched. We had to hire a hundred engineers and build everything ourselves. We also had to become the world’s biggest dry cleaner, and we had to become a data science company to gather, analyze, and leverage the mountains of data we were gathering on every transaction. Sometimes I joke that if I had known we were going to have to do all this just to rent clothing, I would never have launched the company.

Rick Kimball: It seems that your timing was great, considering some of the social and economic trends that began around that time.

Jennifer Hyman: It was late 2008, with social media really taking off. Women started posting piles of photos of themselves on the internet. They needed more variety in their wardrobe, as they did not want to be seen in the same outfit twice. This drove a huge emergence of fast fashion and off-price retail as a category. People were buying clothes in places other than traditional department stores. And the world has continued to change so quickly around us as we’ve built Rent the Runway. All the tailwinds are moving in the right direction.

Rick Kimball: Right. As you grew the team and your company, what was your focus in terms of creating a culture for the company?

Jennifer Hyman: Total, passionate focus on the customer backed by data. What does she need? What does she want? What is she telling us with her choices? Our original value proposition was that she wants to look fabulous at a black-tie event, without breaking the bank for a dress she might not wear again for a long time. Customers embraced that concept and pretty soon many of our customers were renting from us three or four times a year. We were relentless about gathering data on every rental, so we required customers to give us some information about wearing the dress: did it fit, did she love wearing it, and so on. That drove our inventory strategy. Ultimately listening to the customer led to our subscription service, called Unlimited.

Rick Kimball: The TCV team loves Unlimited. What drove the concept of Unlimited, which, today represents a large part of your business.

Jennifer Hyman: We were hearing from customers that renting the runway is great for big events on the weekend, but what about the other five days a week? Can you rent me clothes I can wear at work?

This wasn’t a surprise to us. I had the vision of a “closet in the cloud” from the very beginning. But first we had to make renting a mainstream experience. For perspective, keep in mind that late 2008 was before Uber, Airbnb, and WeWork, and before Spotify came to the United States. The big successful sharing models we have now were still in the future. So we had to normalize the behavior of renting first. But it was already obvious to me that working women needed a new way to get dressed. More women are entering the corporate workforce today, and more women are staying in the workforce after having kids. Women are out in public as working women and entrepreneurs. Now consider that the traditional expectation is that women at work wear a different outfit every day. Beyond that expectation, women want to feel like their best self at work. It matters to their confidence and self-presentation to be well dressed and put together. With Rent the Runway, they can feel like the best version of themselves everyday which is empowering.

Rick Kimball: But dressing this way can be hugely expensive?

Jennifer Hyman: Exactly. In the typical corporate environment, women need a huge number of individual items in order to have a different, great-looking outfit every day. We can make her life not only a lot easier – she can do a lot less shopping – but also more affordable and effective. In fact, our Unlimited customers on average dress with us 150 days a year. That’s 60% of their business year. And we think we could get to an average of 200 days a year.

Rick Kimball: Does Unlimited offer casual clothes as well?

Jennifer Hyman: “Casual” is a big category that we like and have a great inventory for. Many companies have a dress policy known as “corporate casual,” so something you wear to work might also be appropriate for a brunch with friends on the weekend. We also offer clothes and accessories for off-work activities, such as patterned ski parkas and the right beach bag for your summer outfits.

Rick Kimball: How did you get Unlimited off the ground?

Jennifer Hyman: Surprisingly enough, one challenge was convincing my board of directors to raise and spend the money. We didn’t know if women would rent that many days a year, and people doubted that we could build a product to satisfy that demand. You have to remember that back then, massive subscription businesses were rare even for huge franchise companies. It took Netflix and Dropbox years to build a $100 million subscription business, and they were established brands with tens of millions of users. My argument was that with the data science capabilities we already had, we could manage a big increase in inventory without a big increase in risk. Also, the board members had seen some things come true that I had predicted way back when we were asking for our initial funding, such as the decline of department stores. So they, including TCV, trusted my vision and agreed to a beta test for twelve months, which was a success. We launched Unlimited in March of 2016 and it’s growing more than 150% a year.

Rick Kimball: A lot of people talk about big data and how to gain insights to drive better customer experiences. What are the key aspects of your data science strategy?

Jennifer Hyman: From day one we set up a rigorous data-centric culture in which the analytics team gathered suitcases full of data about our customers and our inventory. We also made sure that the data was transparent and usable to everyone in the organization. But it’s not just about numbers on a spreadsheet. We marry the quantitative data to qualitative data. If a customer says she didn’t wear something, we ask why. If she says she liked it but didn’t love it, we ask why. This is how we can constantly evolve our inventory toward higher customer satisfaction. Not only that, we can tell our brand partners what women think of their designs and their manufacturing. Before Rent the Runway, designers got this kind of feedback in little bits, anecdotally. We give them a steady stream of data, which they can use with their other partners. Everybody wins.

Rick Kimball: Describe your customers in more detail – it sounds like women only.

Jennifer Hyman: Men can wear the same three pairs of trousers and the same ten shirts all year and no one knows or cares. That’s why we are sticking with women for now. Our community includes 8.5 million of them, ranging from their teens up through their 60s. When we launched the business, Millennial customers were using us to rent the runway for a special event. Now our brand offering is 200X what it was at first, meaning we launched with clothes from 27 designers and now we have over 500 designers represented on the site. That means we cover a lot of different style types and can offer what you want no matter what your style is, or your age.

Rick Kimball: Is the customer age range the same for the special event dresses and the Unlimited service?

Jennifer Hyman: It is. The typical customer for upscale designer dresses is around 60 years old. So we’re introducing much younger customers to the fashion designers, which just delights both of them. It’s also giving the designers opportunities to create new work with more confidence and insight, because we bring them a large built-in customer base that includes feedback on how successful a garment is and could be. If you’re a young designer with aspirations, Rent the Runway has created a pathway to test your ideas and build your business that never existed before.

Rick Kimball: Do customers buy garments from those designers?

Jennifer Hyman: They do, but what Rent the Runway has really done is enable them to shop differently. Instead of buying a lot of separates, they rely on us for those. They invest in essentials, like a great-fitting pair of black pants that enables them to create millions of outfits. We are introducing our customer to brands she might not have been shopping before – without having to make expensive purchases.

Rick Kimball: You recently began opening brick-and-mortar stores. How does this fit into your strategic of building a comprehensive web-based reverse logistics platform?

Jennifer Hyman: Once we got to scale with a subscription service, we knew we had to achieve greater proximity to the customer. One dry cleaning facility in the middle of the country was not enough. A few warehouses of inventory were not enough. At the same time as we achieved numerical scale, we were scaling up qualitatively: women were trusting us as an essential utility and relying on us to get them dressed for work a majority of the time. So we opened retail stores where women can meet a stylist and try on different brands and pieces of clothing. This really enriches the data profile we have for them, and that makes it much easier for them to rent successfully for all their future occasions.

Rick Kimball: How have customers responded? How have you rounded out your team to deliver the best experiences online and in stores?

Jennifer Hyman: Customers have started to treat the stores as their physical closet. They can take any inventory they want off the shelf and walk out without swiping a credit card.

My vision for our business is that we are continuously disrupting ourselves, and our culture is built for that. We are in a primarily tech and logistics business, yet we are 70% female and 70% non-white. Our engineering team is 50% female. The leadership at Rent the Runway is 80% female. So we are defying the typical startup stereotypes. Come work at Rent the Runway to see the exception to the rule in action!

Rick Kimball: Such rapid growth involves a lot of learning on the job. Did you learn from what other companies were doing?

Jennifer Hyman: I wish that I had had more exposure to other companies in Silicon Valley. I’ve always been inspired by Netflix, but I didn’t know how Netflix was structured or how I could learn from them. I was sitting in New York as a 29-year-old woman with no experience in the tech industry, with no real connections to it and I had to figure this out by myself with my co-founder and our team.

Rick Kimball: This is something other female founders speak about. What’s your take?

Jennifer Hyman: There are some clear reasons why only 2% of venture capital dollars go to female founders. One huge disadvantage is that promising women are not mentored and lifted up early in their careers by others in the tech industry like men are. What you really need in the beginning of a company is tactical help, but if you are a woman, it is not always easy to meet the kind of people who can give you that. When you launch a company, you need someone who can pick up the phone and raise money. Someone who can refer you to talent. Someone who tells you how to set up your first HR system or write your first marketing plan. Those are the skills and help and tactical advice that female founders need. It’s not like we don’t have enough mentors. It’s that they are not mentoring enough women.

Rick Kimball: Speaking of investors and support, how did you get involved with TCV?

Jennifer Hyman: I got involved with TCV through the team, building a relationship with Rent the Runway over many years, and developing trust. And then simultaneously I was building a relationship with Barry McCarthy, the current CFO of Spotify and the former CFO of Netflix. I had a relationship with Barry and when I saw that he was also an advisor to TCV, I thought of it as the marriage of the financial support that we were going to receive as well as operational expertise and guidance.

Rick Kimball: How do you see Rent the Runway fitting into today’s economy and also the competitive landscape?

Jennifer Hyman: Well, I think that we are really the only ones who are trying to get you to buy less stuff. If you think about Amazon, Stitch Fix, Nordstrom, or Poshmark, a lot of what they’re doing is getting you to buy things in creative ways. But it is still buying and accumulating. It is a different value proposition to get you to not own and thus not buy things.

Rick Kimball: Looking out a few years, what excites you about the future of Rent the Runway?

Jennifer Hyman: I think I had a really big, bold vision at the beginning of Rent the Runway, but it’s not even comparable to how big and bold the vision is today. I am enthusiastic about the fact that this is only the beginning of transforming the modern woman’s relationship with her closet. We have to get dressed every single day, all over the world. We are focused on scaling our subscription service, making it even easier to access the “closet in the cloud” each and every day. There’s no reason why having this subscription to fashion shouldn’t become the dominant way that we experience clothing in the future.

Rick Kimball: Thanks, Jennifer, and we wish you and the team continued success.

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TCV is an investor in Rent the Runway and Rick Kimball serves on the board of directors of the company.

The views and opinions expressed in the transcript above are those of the speakers and do not necessarily reflect those of TCMI, Inc. or its affiliates (“TCV”). This transcript is not an offer to sell or the solicitation of an offer to purchase an interest in any private fund managed or sponsored by TCV or any of the securities of any company discussed. The TCV portfolio companies identified above, if any, are not necessarily representative of all TCV investments, and no assumption should be made that the investments identified were or will be profitable. For a complete list of TCV investments, please visit www.tcv.com/all-companies/. For additional important disclaimers regarding this document, please see “Informational Purposes Only” in the Terms of Use for TCV’s website, available at http://www.tcv.com/terms-of-use/


Welsh, Carson, Anderson & Stowe to Lead Majority Investment in Avetta Alongside TCV and Norwest Venture Partners

OREM, Utah, March 21, 2018 /PRNewswire/ — Avetta (www.avetta.com), a leading provider of cloud-based supply chain risk management solutions, today announced that Welsh, Carson, Anderson & Stowe (WCAS), a leading private equity firm focused exclusively on the technology and healthcare industries, will acquire a majority equity interest in the Company. In addition, TCV, a leading provider of capital to growth-stage private and public companies in the technology industry, will acquire a minority equity interest in Avetta. Norwest Venture Partners (Norwest), a premier multi-stage investment firm that partnered with Avetta in 2012, intends to retain a portion of its investment in the Company, alongside the founders and management.

Avetta provides cloud-based supplier risk management and compliance software that allows enterprises to more effectively manage and qualify service providers performing activities across their global operating sites to drive better safety, regulatory compliance and sustainability outcomes. The Company’s platform centralizes the management of contractors in a single system, enabling efficient assessment of safety, compliance and performance records. Avetta’s customers include more than 220 enterprises in over 100 countries. Over 55,000 suppliers and service providers use Avetta’s platform to manage their relationships with enterprise clients.

“We are proud of the role played by Avetta today in connecting the world’s leading organizations with qualified suppliers, contractors and vendors, and look forward to the next phase of our Company’s growth,” said John Herr, Chief Executive Officer of Avetta. “As we welcome WCAS and TCV on board as new partners to Avetta, we also thank Norwest for the support they have provided to our team over the past six years. We are excited to benefit from the combined support and expertise of WCAS, TCV and Norwest.”

Christopher Hooper, General Partner of WCAS, said, “Avetta is a compelling network-based platform given its clear and quantifiable value proposition to both enterprise clients and suppliers, underpinned by a scalable cloud-based software platform and distinguished by a strong leadership team. We look forward to partnering with and supporting John Herrand the broader Avetta team to capitalize on the Company’s significant growth opportunities to build the premier global supply chain risk management platform and continue to enhance safety, compliance and sustainability outcomes for its customers.”

David Yuan, General Partner at TCV, said, “The Avetta platform is unique in that it helps transform how enterprises assess and mitigate risk within their supply chains, simplifying the engagement and evaluation of suppliers to ensure alignment with each client’s unique operating requirements. We are excited to partner with the Avetta team as it pursues a broad range of market opportunities.”

Jon Kossow, Managing Partner at Norwest, said, “This is a fantastic outcome for Avetta’s founders, management team and shareholders. The Company’s technology platform, product roadmap and huge greenfield market opportunity suggest a future that’s just as bright for all parties involved.”

The Company has locations in Utah, California and Texas, with international offices in the UK, Australia and Canada.

Avetta and Norwest were advised by William Blair & Company, LLC. WCAS was advised by Raymond James & Associates.

About Avetta

Avetta provides a cloud-based supply chain risk management platform. Avetta’s global solution connects the world’s leading organizations with qualified suppliers, driving safe and sustainable supply chains. Its next-generation software is used by more than 55,000 active customers in over 100 countries to reduce risk and optimize efficiency. Over 220 of the world’s biggest organizations depend on Avetta every day. See www.avetta.com for more information.

About TCV

Founded in 1995, TCV provides capital to growth-stage private and public companies in the technology industry. Since inception, TCV has invested over $10 billion in leading technology companies and has helped guide CEOs through more than 110 IPOs and strategic acquisitions. TCV’s investments include Airbnb, Altiris, AxiomSL, Dollar Shave Club, EtQ, ExactTarget, Expedia, Facebook, Fandango, GoDaddy, HomeAway, Netflix, Rent the Runway, Sitecore, Splunk, Spotify, VICE Media, and Zillow. TCV is headquartered in Palo Alto, California, with offices in New York and London. For more information about TCV, including a complete list of TCV investments, visit https://www.tcv.com.

All brands, names, or trademarks mentioned in this document are the property of their respective owners.

SOURCE Welsh, Carson, Anderson & Stowe; Avetta; TCV; Norwest Venture Partners

Contact:

Katja Gagen, TCV

kgagen@tcv.com

415-690-6689


10X: What 5G Means for Consumers and Enterprises

Depending on where you look, the number of connected devices, or ‘things’, out there is now in the region of 8.4 billion.  That’s a large number, but it’s barely the start.  By 2020, Gartner expects this total to jump to over 20 billion.

Importantly, this staggeringly fast growth of connectivity for consumer and enterprise use cases necessitates a high-performance network infrastructure and services and 5G will help take the industry to this next level.

In an era where just about everything will be connected—from the familiar smartphone to the connected robot, car or enhanced media distribution—there is a demand to share more wireless data.

3G arrived at the millennium, bringing us a major step forward in wireless connectivity speed. It offered connection speeds of around 380Kbps. The arrival of 4G networks built on that to deliver up to 100Mbps—the performance level many of us are familiar with today.

Even though 5G will be 10 times as fast, it won’t replace 4G in the same way that 2G (and gradually 3G) have been superseded since 4G’s arrival. 5G and 4G will work in complementary fashion to handle different types of traffic most efficiently. 5G remains in a technical trial stage as the standards for mobility and network interoperability continues being developed. Early commercial deployment is expected to start in late 2018. Yet, once the standards are set, there’s no turning back – 5G will be a catalyst for new applications and new opportunities that are just waiting to be imagined.

At the leading edge of this industry is Cradlepoint, an international market leader providing wired and wireless connectivity and networking solutions for distributed and mobile enterprises. Founded in 2006, the company has been at the forefront of providing 3G and LTE networking solutions for enterprises.  The company was first to market with LTE routing solutions. It now has 18,000 customers worldwide and has shipped more than 1.7 million cellular routing platforms.

In a recent conversation, Cradlepoint CEO George Mulhern explored the 5G opportunity with TCV Venture Partner Doug Gilstrap, an IT veteran and the former CSO of Ericsson.

 

Doug Gilstrap: If we believe everything we hear about 5G, it’s all expected to really start happening in 2018. Is that hype or hope?

George Mulhern:  The technical trials are underway as we speak.  The commercial production testing will start in 2018. There are already many 5G trials taking place around the world and 5G-ready base stations have been deployed by the major vendors. They’re already using some of the new spectrum for 5G both licensed and unlicensed spectrum, and the expectation is that it will be commercialized in 2019 and 2020.

Doug Gilstrap: When (and how) does 5G displace 4G? When will it be the new norm?

George Mulhern:  5G and existing LTE technologies are going to coexist for quite a while.

We’ll start to see some limited early deployments in 2018, and it’ll grow from there—but it’s not going to completely displace 4G.  In fact, some of the early deployments will be based on the LTE core—so they’ll coexist. That’s going to be important for customers because they’re looking for a transition.

It’s not going to be a light switch moment where they wake up one morning and 5G is everywhere. It’s going to be expanding over the next two, three, four years. It’ll be a significant improvement to the wireless capabilities as it gets rolled out.

Doug Gilstrap: Whats 5Gs selling point? What benefits can 5G adopters expect?

George Mulhern: Efficiency. We see 5G offering significant cost savings to operators and end users.

Our customers with many sites, branch locations and IoT needs (buses, police cars etc.), can expect better performance with advances towards 5G. This means no lead time to connect and wait for broadband digs, so any new high-speed broadband connectivity can be met instantly.

Also, with 4G Advance and 5G inter-workings, some of our enterprise customers will have better performance compared to the existing fixed line infrastructure in place today.

For customers with massive amounts of logistics and transportation needs, the new 4G/5G data plan charges plus our hardware and software solution makes the implementation, the monitoring, and the usage tracking affordable. And the productivity gains will be impactful. This technology will be price competitive and offer a variety of physical and logical diversity for all our clients.

We’re seeing the operators charging hard into the mobile enterprise space as the next wave of market opportunity, and we are here, hand in hand with our solutions to help make it happen.

 

Doug Gilstrap: Is everything going to be wireless with 5G?

George Mulhern: Because of the 10X performance improvement, 10X latency improvement and capacity improvement, 5G is going to be a tremendous technology. It’ll be a dominant last mile technology, but I don’t think the wires are going to go away entirely.

It’s like when email first hit, and people predicted the post office would disappear. Email opened the way for a whole host of new applications and capabilities, but didn’t completely displace the older technology, although its role in communications has been significantly diminished.

Any time you get something as flexible as wireless that provides the kind of performance and capabilities people need, I think they’re going to naturally migrate towards that. It happened on the LAN with Wi-Fi. It’s happened in the Personal Area Network with Bluetooth. And it will happen on the WAN as well. I would bet Doug’s paycheck on it…

Doug Gilstrap: Thanks…! Do you expect there’ll be a different take-up in different countries, unlike 4G?

George Mulhern:  The race to 5G is full on right now.  It is likely that many of the same countries who led the way to 4G/LTE will be early to the 5G market.  Carriers in the United States, Korea and certain countries in Europe were early movers in LTE and are investing very heavily in 5G right now.  Japan is also investing heavily in 5G and plans to have the network built out when they host the Olympics in 2020.

5G is very important to the carriers/operators because it opens up a much broader set of applications and markets to them.  The mobile phone market has been a tremendous growth opportunity on the consumer side and especially the evolution to mobile broadband (3G+/4G), but it is saturated, and the operators are now really focused on growth in the wireless side for the enterprise.  Examples include fixed wireless access to the enterprise, which is core to Cradlepoint, and we look to provide solutions for growth in other areas as well.  5G will provide opportunities in Fixed Wireless Access (FWA) for enterprise and residential (video), Internet of Things applications, autonomous vehicles, etc. That hits home for companies like Cradlepoint who can help deliver these new applications and services to the end customer.

George Mulhern: Now, let me ask you, who do you think will benefit the most, consumers or the enterprise—and what industries will be early adopters?

Doug Gilstrap: I think both enterprise and consumers are going to benefit tremendously from this battle among carriers to get solutions to market first.  We have seen the industry pull in their timelines for 5G from what they were, and they’re currently selling 5G-ready radios and are in 5G trials with many of the largest operators.  We’ll see the commercial first movers with the device versions in the latter half of 2018.

For the enterprise specifically, there are a lot of use cases that will need lots of bandwidth, so operators are utilizing different options across the 5G spectrum such as 3.5 gigahertz and 28 gigahertz because more capacity is needed to meet enterprise needs—and not just speed, it’s throughput as well.

Think of mission-critical applications for the enterprise, where there’s a lot of imaging needs and where a lot of data throughput has to be in real time with no jitter because people are using that data to make decisions. Or think of the oil and gas or utility industries which have remote diagnostics and imaging requirements.

There’s also healthcare where imaging and X-rays need to be shared because professionals are doing their work remotely. It will also be massive for video distribution to the enterprise or to the consumer residential markets. These require high-end bandwidth and low latency for quality of service. Any mission-critical application that requires that fits 5G very well.

On the horizon are consumer applications such as augmented reality, virtual reality, and the autonomous car. If you consider all the sensors and the data transmission that has to go back and forth—from the speed of the car to the cars on the road and changing road conditions—there’s so much going on. It’s low latency and high throughput.

 

Doug Gilstrap: How should enterprises think about preparing for the deployment and adoption of 5G? What are best practices and pitfalls to avoid?

George Mulhern:  My advice for enterprises preparing for 5G would be: Don’t wait.

Start incorporating LTE into your organizations now. With gigabit LTE commercially available on multiple operator networks, you can get much of that performance already. In the digital economy, it’s the companies that can move with speed, agility and gain insight that will succeed. Incorporating wireless into their business today not only prepares them for 5G, but they’ll start to reap some of those benefits much earlier than their competitors.

Doug Gilstrap: How do businesses really take advantage of LTE and 5G? Because it’s not easy. You can’t just say, “Oh, I’m going to implement 5G, and we’re ready to go.” It’s gigabit LTE as well.

George Mulhern: Each customer has their own priorities and strategic goals. We have customers today using LTE as their only WAN source for their branch offices.  Others are using it for temporary networks (a pop-up store for example), or air-gapped networks for security reasons.  Smart City applications like connecting traffic lights, Wi-Fi in businesses, connected police cars, digital signage, surveillance cameras, kiosks, the list of “things” being connected now is endless.

What’s ideal for retail and transportation can be different than what’s needed in the public sector or in financial services, however high speed, secure mobile access fits in with each of these verticals.

It is our view that this next generation of edge networks need to be much more agile and flexible. They need to be able to expand, contract, and incorporate new applications as business needs dictate.  We call it the Elastic Edge.  These networks will be Software-Defined, Cloud Orchestrated, Wireless and much of the time delivered as a service to the customer. Therefore, 5G will be a game changer in terms of flexibility, agility, performance, and cost.

Doug Gilstrap: George, what’s the fastest chipset that you will have in your routers from a theoretical chipset speeds standpoint for 4G advanced next year?

George Mulhern: Today we know that there are many operators that have commercially launched LTE Advanced 1 Gigabit services and our solutions will support this gigabit speed.  As 5G moves above the 1 Gigabit level to 10 Gigabits, so will we, supporting gigabit speeds on our platform in 2018, as those networks become available to the enterprise.

Our goal will always be that our solutions will be able to operate as fast as the networks will support.

 

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TCV is an investor in Cradlepoint and Doug Gilstrap serves on the board of directors of the company.

The views and opinions expressed in the transcript above are those of the speakers and do not necessarily reflect those of TCMI, Inc. or its affiliates (“TCV”).  This transcript is not an offer to sell or the solicitation of an offer to purchase an interest in any private fund managed or sponsored by TCV or any of the securities of any company discussed.  The TCV portfolio companies identified above, if any, are not necessarily representative of all TCV investments, and no assumption should be made that the investments identified were or will be profitable. For a complete list of TCV investments, please visitwww.tcv.com/all-companies/.  For additional important disclaimers regarding this document, please see “Informational Purposes Only” in the Terms of Use for TCV’s website, available at http://www.tcv.com/terms-of-use/