Ikanos Closes $15M Funding Round

Ikanos Communications raises $15M in a Series E round of financing led by Copan, to expand its partnerships and alliances

April 27, 2004

3 Min Read

FREMONT, Calif. -- Ikanos Communications, developer of Smart Silicon For Profitable Broadband(tm) and the first company to extend broadband speeds up to 100 Mbps over single-pair copper, today announced the receipt of more than $15 million in Series E funding led by Copan, a venture capital fund with offices in Munich, London, and Silicon Valley. Copan was joined in the Series E round by PMC-Sierra (Nasdaq: PMCS), in addition to Ikanos' current investors, Greylock Partners, Intel Capital, JP Morgan, Ridgewood Capital, Sequoia Capital, Telesoft Partners, TL Ventures, Walden International and VentureTech Alliance, an affiliate of Taiwan Semiconductor Manufacturing Company. Ikanos plans to use the new capital to expand and strengthen its partnerships and global alliances to accelerate international market expansion.

"Ikanos is perfectly positioned to take broadband to a much higher level, enabling the growth of new businesses, " says Torsten Kreindl, Copan's board representative to Ikanos. "In the European Union with its 450 million population where broadband infrastructures lag behind Asia, Ikanos will be instrumental in enabling telecom service providers to offer fiber-quality triple play services (broadband access, data and voice) using their existing copper access networks." "Ikanos and PMC-Sierra have entered into a highly complimentary joint marketing partnership that further expands our position within the burgeoning broadband VDSL market," said Bob Bailey, president and chief executive officer of PMC-Sierra. "A deeper cooperation between Ikanos and PMC-Sierra will result in faster time-to-deployment and greater cost efficiencies for network service providers."

Ikanos Communications has changed the economics of developing broadband access products with a new class of programmable silicon solutions. Ordinary copper telephone lines continue to serve most businesses and consumers. The Ikanos chipsets bridge the fiber-copper performance gap by delivering speeds of more than 100 Mbps to consumers and businesses over copper. Ikanos' technology is on the roadmap for major telecommunications service providers because it provides the highest broadband price performance. Ikanos recently announced that global shipments of its programmable chipsets surpassed two million ports since volume production began in the fourth quarter of 2002, with orders more than doubling since October of last year. Ikanos' Fiber-over-Copper Extension technology now supports equipment in the world's most advanced carrier networks in Korea and Japan, with demand accelerating in Europe and North America.

Ikanos will help leading telcos execute their strategic plans faster and cheaper and achieve a sustainable competitive advantage over cable operators and fiber-based service providers. The Ikanos family of chipsets includes the FxTM family for FTTP/FTTH over copper and the SmartLeapTM family for the VDSL-DMT over copper markets. These chipsets deliver Ethernet or ATM services at data rates up to 100 Mbps downstream and 50 Mbps upstream, or symmetrical rates of 50 Mbps over single-loop copper. Further, Ikanos provides on-chip Quality of Service (QoS) for a new standard of excellence in powering premium quality video services.

"The fact that Ikanos has received such strong interest from the venture capital community is a powerful testimony to the value of Ikanos' technology and the commitment of the Ikanos team," said Rajesh Vashist, president and chief executive officer of Ikanos Communications. "This support, and the manufacturing leadership exhibited by our customers, will ensure that carriers have the highest quality communications infrastructure at a price that's affordable on a universal scale."

Ikanos Communications Inc.

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