Original URL: http://www.theregister.co.uk/2011/01/12/pac_fibre_funding/

Pac Fibre secures more funding

PayPal co-founder included in $NZ5.5 million raising

By Richard Chirgwin

Posted in Broadband, 12th January 2011 23:01 GMT

The proposed Pacific Fibre, which if built would add both capacity and competition to the trans-Pacific fibre route, has announced $NZ5.5 million of funding from PayPal co-founder Peter Thiel via his Valar Ventures investment vehicle.

In an announcement posted on the Pacific Fibre Website, Thiel is quoted as describing the venture as “significant to the growing technology industries in New Zealand and Australia.”

New Zealand has limited direct links to the USA, with only the Southern Cross Cable Network making the trip. If it is able to raise the funds for the $NZ300 million to $NZ400 million build, Pacific Fibre is expected to enter service with more than 5 TB of capacity in 2013.

Correction:It's been pointed out to The Register that Peter Thiel is a participant in the capital raising, alongside Pacific Fibre's existing external investors, and that the total raising was $NZ5.5 million including Thiel's contribution.