CoreOptics Lands $25M

Optical startup CoreOptics Inc. received $25 million in financing, which it will use to ramp up sales and marketing and increase its development of 40-Gbit/s subsystems. (See CoreOptics Gets $25M.)

CoreOptics's most recent funding came from prior investors, bringing total financing to more than $90 million. Investors include Atila Ventures , Crescendo Ventures , GIMV, High Tech Private Equity GmbH , Quest for Growth NV, T-Com , and TVM Capital . (See T-Com Invests in CoreOptics, CoreOptics Nabs Another $28M, CoreOptics Raises $28M, CoreOptics Closes $15M Series C, and CoreOptics Closes $21.5M.)

CoreOptics makes 10-Gbit/s and 40-Gbit/s transponders that use electronic equalizers to clean up the signals that pass through optical networks. That saves carriers money on amplifiers and dispersion compensation modules. (See CoreOptics Touts MLSE.)

That strategy has been common in 40-Gbit/s efforts as components and equipment vendors try to squeeze those speeds onto 10 Gbit/s networks. Like CoreOptics, most other companies are trying to get to 40 Gbit/s without dispersion compensation; one example is OpVista Inc. , which claims it can accomplish the feat by packing more carriers of light onto a fiber. (See OpVista Runs With DMC for 40-Gig.)

Saeid Aramideh, CoreOptics VP of marketing, says that thus far, most work in the optical space has gone toward reducing costs, but "cost reduction can only take you so far."

"There's been hardly any investment in optical innovation. All the money has gone into WiMax, WiFi, and other things," Aramideh says.

While Aramideh says proceeds of the most recent funding round will go toward further 40-Gbit/s product development, the company has also been active in 100-Gbit/s. Last year at OFC/NFOEC, CoreOptics showed off 100-Gbit/s technology with Nokia Siemens Networks . (See OFC Notebook II, 100-Gig Chases 40-Gig, and CoreOptics Demos 100G.)

In addition to CoreOptics, other component vendors to have raised money recently include Mintera Corp. , Gemfire Corp. , and Santur Corp. . (See Mintera Adds Cash, Partner, Gemfire Lights Up $37M, and Santur Raises $26.5M, Talks IPO.)

— Ryan Lawler, Reporter, Light Reading