Internet Service Provider Snip Internet Closes $7.75 Million Funding Round

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Snip, a Cleveland-based internet service provider specializing in serving apartments, has announced the close of a $7.75 million Series B funding round that will enable its expansion into Milwaukee and Columbus.

Snip was founded in 2016 by Brett Lindsey, who is also president and CEO of fiber-based internet provider Everstream, which is also based in Cleveland.

In the four years since launching, Snip has been building itself up to expand into new markets, which this new capital will support, Lindsey said.

In the Cleveland market, Snip’s client base includes 6,500 units in 25 apartment buildings. Snip’s goal is to grow into 25 apartment buildings in each of its new target markets.

“Throughout the Midwest, the urban revitalization occurring is bringing new residents into downtown areas, driving demand for quality high-speed internet service,” said Snip vice president and general manager Robin Doerschuk in a statement. “People moving downtown expect their internet service to be reliable and fast, which isn’t the case in many properties today.”

Everstream, which is operated independently from Snip, is in the midst of a $250 million expansion of its own, projected to scale that operation to more than 15,000 miles of route fiber with more than 3,000 on-net locations in 12 markets throughout the Midwest by the end of 2020.

The company offers two straightforward, “symmetrical” internet options at speeds of either 100Mbps or 1G at monthly rates of $50 and $75, respectively. Part of its value proposition is offering no contract, installation or hardware fees.

Per a description by the business: Snip’s goal is to not only offer the fastest service and best customer experience available, but to also add considerable value to its real estate partners by delivering higher occupancies, longer retention rates and increased property values.

The Series B round was led by Peppertree Capital Management of Chagrin Falls, with additional support from Limelight Partners, Imperial Court and Weinberg Capital Partners, according to a news release.

“We invest in communications infrastructure that delivers services to customers, disrupting the status quo by outperforming the competition,” said Peppertree co-president Howard Mandel in a statement.

This latest round follows a Series A funding round of $900,000 raised by local angel investors in 2016.

Snip declined to share staff size or revenue.