With traditional testing equipment every product generation has required new set of testing equipment as well, costing hundreds of thousands or even millions for network equipment manufacturers. Sarokal has created a new kind of testing equipment platform to test network interfaces where software plays a major role, therefore requiring only minimal hardware update. This novel approach doesn’t just save money between product generations, but also enables multiple uses of same equipment within organization as well as totally new use cases for testing. For instance hardware testing as a part of ongoing embedded software development has often been just too expensive. There’s a hundred million dollar market for equipment like this and Sarokal’s software oriented approach makes them very cost efficient as well as allows faster than usual scale-up due these additional use cases within organization.
Prior to Butterfly’s investment Sarokal had finalized the first product version, acquired their first major telecommunications customer and secured multiple pilot customers.
“Most of the testing equipment manufacturers for telecommunications industry has been very traditional, hardware oriented and extremely expensive. Every new product generation also requires new set of testers. Our products do most of the stuff with software and therefore offer better functionality, lower cost and a possibility to upgrade with minimum hardware changes. There’s also an added benefit. Our system can be scaled up easily and cost efficiently, thus making more extensive hardware testing along the ongoing software development possible, which hasn’t been previously possible. Butterfly will bring in needed resources for scaling up the business.” (Harri Valasma, CEO of Sarokal Test Systems)
Butterfly invested into Sarokal because their target market is large and the early indicators of customer traction they have. Sarokal has also been able to develop a very complicated product into launch ready stage with novel software based approach. Furthermore, team has the right background for tapping into testing equipment market, both from business as well as tech point of view. Butterfly’s investment will be used to confirm the business model by acquiring additional key customers and development of next product version.