EURO 7 MILLION FUNDING FOR DUTCH CHIPMAKER
Breakthrough opto-electronic chip technology reduces costs to network operators
The Netherlands based chipmaker ThreeFive Photonics, developer of breakthrough opto-electronic technology, today announced it completed its first round of financing by securing Euro 7 million ($6.4 million) from venture capital companies Atlas Venture and Gilde IT Fund. The company will use the capital for the development of next-generation optical chips, integrating complete network subsystems on a single chip, thus dramatically reducing costs and significantly improving performance of telecommunications systems in use by network operators globally.
"Clearly, we are very pleased with the support of Atlas Venture and Gilde IT Fund, who both are reputable investors in communications technology," says Wouter Deelman, CEO and co-founder of ThreeFive Photonics. "This will enable us to complete the development of our first chip, codenamed Argo, and to prepare it for production. We will have a working prototype of Argo by the end of this year. Production will start in 2002."
Worldwide, telecom network operators are under severe pressure to reduce their investments in network equipment, which drives their suppliers to develop systems that yield improved functionality at a lower price. This trend creates a favorable market for the solutions that ThreeFive Photonics is in the process of developing.
ThreeFive Photonics focuses on miniaturizing and integrating the functional components and devices that make up today s telecommunication network subsystems. Realizing this on a large scale will result in a major cost reduction of those subsystems, ultimately leading to fundamentally new network architectures. ThreeFive Photonics focuses on monolithic integration of opto-electronic components on Indium Phosphide based materials, using concepts that have been proven on a laboratory scale. The company now follows a phased development path that will yield a sequence of products of increasing complexity and functionality, culminating in the production of complete network subsystems integrated on a single chip. In today s market venture capitalists have become much more critical when assessing investment opportunities than in 1999 and 2000. Seen against this background, the willingness of two leading venture capital organizations to provide a total of Euro 7 million ($6.4 million) as the first round financing for ThreeFive Photonics expresses their confidence in the strategic direction and potential of the company.
Atlas Venture sees great opportunities for ThreeFive Photonics. "We are happy to participate", says Gerry Montanus, General Partner of Atlas Venture. "The market pressure to reduce the costs of telecommunication network systems is huge. We believe that ThreeFive Photonics will be able to address that need and significantly influence that part of the telecommunications industry."
Gilde IT Fund provided the seed capital to launch ThreeFive Photonics early in 2001and is now further increasing its investment. "Since the initial investment, ThreeFive Photonics has exceeded our expectations" says Anton Arts Director of Gilde IT Fund. "The company s team of internationally recognized designers and developers has demonstrated an outstanding ability to transform scientific advances into tangible products and a roadmap that will demonstrate the significant potential of the technology."
The Board of Directors of ThreeFive Photonics now consists of messrs. Dimmes Doornhein (chairman), Anton Arts and Gerry Montanus.
About ThreeFive Photonics ThreeFive Photonics focuses on the development and manufacturing of opto-electronic chips for use in telecommunication networks. The chips of ThreeFive Photonics are based on Indium Phosphide, a compound of elements in columns Three and Five of the Periodic Table of the Elements, instead of the more common Silicon, a column-four element. The company s R&D team has a track record in integrated optics, including an optical cross-connect on a chip as small as 1.5 mm by 3 mm. ThreeFive Photonics targets the integration of entire subsystems on a single chip, thereby significantly improving size, cost and performance of telecommunications systems.
About Atlas Venture Atlas Venture is the leading international, early-stage venture capital firm investing in communications, information technology and life sciences companies. With offices in Amsterdam, Boston, London, Menlo Park, Munich, Paris, and Seattle, Atlas Venture s investments are split evenly between the United States and Europe. Founded in 1980, Atlas Venture has organized six international funds, and currently manages over $2.5 billion in committed capital. The Atlas Venture investment team is comprised of seasoned operating executives and career venture capitalists who have been deeply involved in the formation and development of more than 300 companies worldwide. For more information, visit the Atlas Venture website at www.atlasventure.com.
About Gilde IT Fund Gilde IT Fund is one of the largest and most successful venture capital funds in Europe. Distinguishing characteristics are its entrepreneurial approach, focus on specific areas and a longstanding track-record in building leading international IT enterprises. With more than 80 investments in the IT industry in Europe, the US and Israel, and more than 20 successful IPOs and trade sales, Gilde is an international venture capital fund with a proven track-record.
For further information:
Steijger.communications
Tel: +31 (0)36 523 5330
Gsm: +31(0)6 555 92365
ThreeFive Photonics
Tel general +31(0)70 451 7689
Fax +31(0)70 451 7684
e-mail info@35ph.com
www.threefivephotonics.com
E-mail: info@35ph.com
Web site: http://www.threefivephotonics.com
