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Issue: 16 - 22 Dec, 2009
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picoChip raises $20m in venture capital

Wednesday 18 November 2009 04:07

picoChip has raised $20m in venture capital taking its total VC funding since it was founded to $90m.

"This investment comes as the market is taking off for picoChip: it is testament to what we have already achieved, and to our investors' belief in our future," says picoChip CEO Nigel Toon, "picoChip was the pioneer in femtocell technology and we are delighted to see our customers and partners deploying in volume in the rapidly developing global femtocell market. This investment strengthens our balance sheet and fully funds us through to IPO."

That suggests Toon and picoChip's VCs have pencilled in 2010 as the year for the company's IPO.

picoChip's investors include, Atlas Venture, Highland Capital Partners, Pond Venture Partners, Scottish Equity Partners, and Rothschild plus strategic investors AT&T, Intel and Samsung.

"At Highland, we invest in companies that can establish leadership in explosive, high-growth markets," said Dan Rosen, Principal at Highland Capital Partners, "we are very excited about picoChip's prospects in the femtocell market. The company continues to win market share with proven best-in-class technology."

ABI Research forecasts the total available femtocell market in 2010 will reach 2.3m units, rising to 40m units in 2014. In 2009 six major network operators have launched femtocell services that cover the USA, Europe and Asia.

Having been the first to market with a femtocell solution in 2005, picoChip reckons it is the leading technology supplier for carriers' HSPA rollouts, with seventeen customers using picoXcell product.

'The additional investment allows the company to consolidate its leadership in next-generation wireless and assist in the next phase in the company's growth', says the company.

See also: Mannerisms, the blog of David Manners. Updated twice daily, it's the distinctive, entertaining, authoritative and never dull commentary on the semiconductor industry, from someone who knows. Sign up for the Mannerisms eNewsletter.

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