Originally posted at St. Louis Business Journal.
A Chesterfield-based fiber internet firm, HyperFiber LLC, says it has invested $30 million in the past year to develop new fiber networks, with national expansion eyed in the future. The local firm says it began operations in 2023 and has since built fiber networks in Punta Gorda, Florida, and Hot Springs, Arkansas. It has also assembled an executive team the firm says has decades of experience in the fiber internet and telecommunications industries.
HyperFiber is led by President and CEO Dan Kennedy, who previously was CEO of Peoria, Illinois-based i3 Broadband. Michael Whitaker is HyperFiber’s executive chairman. Like Kennedy, Whitaker formerly worked at i3 Broadband as head of sales and marketing. Other executives at HyperFiber include Chief Financial Officer John Jennings, Chief Operating Officer Justin Nelson and Executive Vice President and Chief Marketing Officer Jerry Dow.
Kennedy said HyberFiber’s initial fiber networks in Punta Gorda and Hot Springs have passed about 20,000 locations, with the company securing its first 500 customers. “We will be targeting another 100,000 passings in the next 12 months,” Kennedy said.
As it scouts locations to build new fiber routes, HyperFiber will focus on communities where fiber internet is provided to residents, saying existing competition can make entrance into a new market challenging, Kennedy said.
“The consumer is very happy once they get the product. Transitioning the customer from one fiber provider to the other is almost impossible. You get a really low take rate,” Kennedy said.
HyperFiber prices its fiber internet service based on internet speed, with its plans ranging from $65 to $85 per month for a household.
As for future expansion, Kennedy said he believes there’s ample locations in the U.S. to build where fiber isn’t currently offered. HyperFiber is eyeing Colorado and Louisiana for its next states for expansion, he said. The firm currently is largely targeting the Southeast for new markets because of warmer weather there that more easily allows for construction year round. But it has ambitions to broaden its footprint.
“We’ll expand north over the next few years,” Kennedy said.
HyberFiber has received $180 million in equity funding from investment holding company Platform Investment Partners, which targets investments in telecommunications and broadband and has offices in South Africa and Los Angeles. HyperFiber is also in the process of securing debt financing, saying it expects to close on that transaction in the next 60 days.
HyperFiber has a team of about 50 employees, Kennedy said. The firm, with its headquarters at 400 Chesterfield Center, has 13 employees based locally.
