CradlePoint History
In 2004, Pat Sewall founded CradlePoint with the idea of delivering personal connectivity that leveraged the converging technologies of both WiFi and 3G cellular. His first creation was a device that looked like a simple charging cradle for one of the early-to-market 3G EVDO mobile phones. Under the covers, however, was a cleverly engineered router with a WiFi access point. This merging of cradle with access point spawned the company name, and also allowed the company to pursue the blending of cellular broadband with local wireless LAN.
Pat tapped co-founder Gary Oliverio in 2005 to engage with handset companies, operators, and early adopters to test various ideas in order to come up with the right connectivity formula that was convenient, reliable, and easy to use. During this time, 3G networks became much more pervasive and it became clear that customers were looking for a simple appliance that could integrate two key functions: cellular network connectivity and convenient WiFi routing. CradlePoint created a prototype in late 2005 of the world’s first personal, portable hotspot – a small 802.11 b/g router with an integrated battery, and a smart USB port that instantly created a WiFi hotspot just by plugging in a 3G handset.
In 2006, co-founder Ryan Adamson joined, and the three began planning the revenue growth plan for the company. Early in 2007, the founders raised sufficient capital through family and friends to acquire the PDA ‘docking cradle’ product line from Mobility Electronics. By leveraging this established business, Pat and his co-founders were able to establish a revenue base that could finance the development of the fledgling router product family. By the end of 2007, CradlePoint had created its technology brand, WiPipe™, and had achieved revenues in excess of $6M, shipping two leadership 3G router products: the CradlePoint CTR350 (the world’s smallest 3G router) and the PHS300 (the first commercial, battery-powered WiFi hotspot). The advent of these prodcuts established an entirely new product category for mobile broadband operators worldwide.
Moving forward, the company saw many milestones, including the introduction of the CradlePoint MBR1000, the first 802.11 ‘n’ 3G router, and the CradlePoint CTR500, the first travel router that supported both USB and ExpressCard modems. Other products created that year included the CradlePoint MBR800 and the CradlePoint CBA250, which expanded the company’s reach to support kiosk, digital signage, and the traditional M2M market. In 2008, CTIA awarded Cradlepoint with the Emerging Technology Award for the PHS300 Personal WiFi Hotspot, and Verizon Wireless certified two CradlePoint products through its Open Development Initiative. This certification helped drive some key deployments within several high-volume enterprise customers.
Additionally, CradlePoint engaged in various OEM and carrier-branded opportunities through its WiPipe-Powered Initiative. Kyocera introduced its KR-2 router, and Sprint introduced its PHS300 Personal Hotspot, which also sported the WiPipe™ logo. The device was firmware-upgradeable and was the first portable device capable of supporting Sprint’s WiMax 4G network.
As more business customers became aware of mobile broadband routing solutions from CradlePoint, greater focus was put into enterprise features and functionality. The CradlePoint MBR1200 and CBA750 were designed specifically for enterprise deployments, and delivered key security features such as VPN endpoint connectivity, and an innovative remote management service, WiPipe™ Central. WiPipe Central gave enterprise customers the ability to remotely configure and manage a large number of deployed systems. With the explosion in 3G networks and USB modems, CradlePoint also beefed up its network coverage – expanding compatibility to more than 300 different modems operating on scores of cellular networks worldwide. CradlePoint became known for the broadest network interoperability footprint in the industry, with the easiest-to-use, most-flexible products.
As 4G LTE networks started to roll out, CradlePoint was first to market with LTE-capable solutions. Verizon Wireless invited CradlePoint to be on stage at CES in January of 2011 at its 4G LTE network debut event, allowing CradlePoint to demonstrate live systems with integrated LTE radio. Through the year, CradlePoint continued to innovate with the introduction of devices with integrated modems for M2M applications, and broadened its integrated business modem offering to support a wide range of 3G and 4G networks.
Also in 2010 and 2011, CradlePoint successfully brought in additional capital through venture firms Highway 12, OVP and Mercato Partners, putting CradlePoint on a transition path from start-up stage to revenue growth stage.