Tel Aviv-based Sheer Networks has completed a financing round led by Star Ventures. The company won't say how much it raised, but TheMarker has learned the sum to be more than $15 million.

Existing shareholders took part, including JK&B Capital, Israeli fund Jerusalem Venture Partners, Rein Capital, and Nortel Networks, which invested $11 million a year ago.

Sheer was established in 1999 by a group of ex-3COM workers, including Sharon Barkai, Ariel Noy and Sunil Kishen.

The company's technology enables broadband communications providers to receive immediate reports on system malfunctions, such as customer disconnection from the broadband networks, facilitating speedy response.

The company's flagship product, an operating system for the broadband network called Sheer MetroCentral, serves as a mediation layer between network installations and applications, assuring the carrier's compliance with its service contracts.

The market of service controllers for new-generation networks, which is Sheer's sphere, is estimated to be worth several hundred million dollars, and is expected to grow. The research firm RHK sees it reaching about $2 billion by 2007.

Sheer's customers include Israel's national phone company Bezeq (TASE: BZEQ ), which spent millions on the startup's systems; singtel of Singapore; and Korea Telecom.

The company also has alliance agreements in place with major companies including Cisco Systems and Hewlett-Packard.

Sultan Zia has taken over as CEO, replacing Barkai, who had served in an acting capacity. Previously Zia had led Compaq's Communications Industry Solutions unit. The company's board includes Ray Lane, formerly the president of Oracle and today a partner in Kleiner Perkins Caufield & Byers.

Sheer has 70 employees at offices in Massachusetts, Britain, Singapore and at its development center in Tel Aviv.