Kevin Martin Sets Up Growth Capital Shop

Kevin Martin, the former chairman of the Federal Communications Commission, has created a growth equity shop called Carmichael Partners. Martin and partner Brian Bailey have made their first investment in Bandwidth.com, which raised $22 million in its first round of funding. Carmichael raised the money from institutions and individuals for Bandwidth.com, but Martin says the partnership has yet to raise an actual fund because of the fast timing required for it to participate in the Bandwidth.com deal. Martin declined to discuss the details of raising the fund, citing SEC regulations. However, it’s safe to say Martin and his partner Bailey are planning on raising a growth equity fund focusing on the media, telecommunications and technology sector, and Martin says the two hope to invest in deals that take advantage of several trends, such as the shift to all IP-based communications. Bandwidth.com fits that thesis, as it offers both software and network to deliver VoIP telephone services to businesses, as well as a wholesale business that provides the voice infrastructure for startups such as Pinger and Skype. Last week it also announced a data service via it’s newly-launched broadband.com nationwide broadband map.