SyChip Raises $15M

SyChip raises $15M in third round of financing, led by Sierra Ventures

October 7, 2003

2 Min Read

PLANO, Texas -- SyChip, Inc., a leading provider of Radio Frequency Chip Scale Modules (RF-CSM) for the wireless market, today announced that it has completed its third round of private equity funding of $15 million. The round was led by Sierra Ventures and included existing investors 3i US, Alliance Technology Ventures, Genesis Park, Intel Communications Fund, K2 Development, Markpoint Venture Partners, Masthead Venture Partners, New Venture Partners, and Pacesetter Capital.

The funding follows a successful year during which the company launched two new products and added several tier-I customers from the U.S., Japan and Korea to its portfolio. The current funding provides SyChip with a strong cash position as it moves towards profitability. SyChip will use the capital to grow its customer and partnership base, bolster production of its WLAN products, expand its sales team, and accelerate development of multiple radio wireless modules.

"The wisdom and experience of our investors has helped us reach major milestones in our business, and we heartily welcome Sierra Ventures to our team," said George Barber, president and CEO of SyChip. "We feel that the value of our industry position is greatly enhanced by the support of our investors and our board of directors".

Increasing demand for Internet access and connectivity everywhere is driving OEMs to add high-speed wireless functionalities such as WLAN to cell phones, PDAs, notebooks and consumer devices. According to market research firm In-Stat/MDR, the demand for WLAN based wireless mobile connectivity is expected to grow from 18M units in 2002 to 75M units in 2006. Using SyChip's RF designs and modules, as well as its proprietary multi-function ASICs, software, and smart utilities, OEMs can quickly add WLAN capability and significantly reduce their time-to-market while increasing the performance and improving the reliability of their wireless devices.

Concurrent with the funding, Jeff Drazan, general partner of Sierra Ventures, will be appointed to SyChip's board of directors. "SyChip is well positioned to become a category leader in the RF-CSM market for Internet-enabled mobile devices. With an increasingly complex semiconductor value chain, the influence of subsystems providers will continue to grow. Companies such as SyChip who are close to end customers will continue to identify and address key customer pain points, enabling OEMs to deliver scalable products faster," commented Mr. Drazan.

Mr. Drazan joins existing board members Marko Maschek of 3i US, Stephen Socolof of New Venture Partners, William Lyman of Alliance Technology Ventures, Mark Floyd of Entrisphere, Inc., and George Barber, CEO and president, SyChip Inc.

SyChip Inc.

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