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Financial

Hyperchip Lands $43M in Financing

Hyperchip Inc. said Friday that it has secured another US$12.4 million in venture funding and about $31 million in repayable loans from the government of Quebec. This brings the company's total funding to date to about US$136 million.

The company says its router, designed to handle up to 65,000 OC192 (10 Gbit/s) interfaces per system, is in trials with one large carrier (see Hyperchip Hypes Its Hardware and Hyperchip Raises $67 Million ).

"We've completed our first beta trial and were pleased with the results," says Hyperchip CEO Brian Barry. "Now we're hardening the product -- testing and retesting it to make absolutely sure it is what it should be."

The company is planning additional trials with an unnamed carrier and will release its product later this year.

Hyperchip's funding round, its fourth, was led by TechnoCap with investments from Vertex Technology Fund, Advent International, Optical Capital Group, JT Ventures, Artémis, and Pilgrim Baxter.

The company has grown to 280 employees so far, several having joined recently, when IP Optical went under (see IPOptical Fades, Hyperchip Feasts and Hyperchip Hires Hershey).

— Phil Harvey, Senior Editor, Light Reading
http://www.lightreading.com
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skeptic 12/4/2012 | 11:03:31 PM
re: Hyperchip Lands $43M in Financing
The numbers from that press release are in
canadian dollars. I think their website
says that all numbers produced in hyperchip
documents are done that way. I think that
light reading's numbers are in US dollars.

lurker 12/4/2012 | 11:03:31 PM
re: Hyperchip Lands $43M in Financing skeptic - one question...

I want to work where you work.. all that free time to poast messages.. are you hiring ?? ;)

metrodude 12/4/2012 | 11:03:31 PM
re: Hyperchip Lands $43M in Financing Check your numbers!!, and thier website.

MONTREAL - January 18, 2002 - Hyperchip Inc., The Petabit Routing CompanyTM announced today that is has secured $70 million in its fourth round of financing, bringing the total amount raised to some $220 million. Lead investor TechnoCap was joined by Vertex Technology Fund, Advent International, Optical Capital Group, JT Ventures, Art+¬mis and Pilgrim Baxter. This round includes a $50-million loan from Investissement-Qu+¬bec.
MKTG_Hack 12/4/2012 | 11:03:30 PM
re: Hyperchip Lands $43M in Financing Probably just differences in currency.
Milano 12/4/2012 | 11:03:29 PM
re: Hyperchip Lands $43M in Financing Hatzfeld is right. Government can't resist industrial policy, the main difference is that the sacred cows are not the same. Used to be cars, shipyards, now is technology and baseball.

The only loser, as usual, is the taxpayer.

M.
hatzfeld 12/4/2012 | 11:03:29 PM
re: Hyperchip Lands $43M in Financing And what about US states and cities subisidizing baseball stadiums?

;-)
Larry, Monkey 12/4/2012 | 11:03:28 PM
re: Hyperchip Lands $43M in Financing 70 million Canadian dollars = 43.3733 million U.S. (today)
BigHead 12/4/2012 | 11:03:27 PM
re: Hyperchip Lands $43M in Financing >My issues with Hyperchip's funding are:

>1) The Quebec gouvernment has entered into a
>*very* speculative investment. Far more than the
>caretakers of public trust should attempt. If
>VCs aren't ready to fund this company, why
>should M. & Mdme. Tax Payer?

>2) I'll admit to being human: I'm jealous that
>my company isn't receiving similar treatment
>from my gouvernment!


Perhaps the fact that you aren't receiving
funding has nothing to do with the government.
:)
shannonlimit 12/4/2012 | 11:03:27 PM
re: Hyperchip Lands $43M in Financing
I have no idea whether Hyperchip has a product or anything like that, but there are a couple of fund-raising scenarios that could have happened to explain their latest round. One will be the pessimist's view, another the optimist's. Both could reasonably happen...

1) Hyperchip is a dog and was having a difficult time raising money. Through some means it secured the letter of credit with the Quebec gov't, and as a result of the new availability of significant capital was able to scrounge up another 12M from current investors (who are willing to toss a little more in, given that the gov't was willing to pour a bunch more cash in). It could have been a washout, with a valuation based almost entirely on the loan from the gov't. Massive dilution, screwed employees, etc.

-or-

2) Hyperchip is kicking ass, and people were standing in line to give them money. They saw the opportunity to complete their round with a sweetheart gov't subsidy, and then let a few select current investors "double-down" their bets as a favor for supporting them early on. They didn't even need the VC money, as they just need enough cash to go revenue positive and IPO in 15-18 mos. Good valuations (at least considering current market condidions), happy investors, etc.

I don't know, just some idle speculation. But then again, that's all Light Reading is really good for, isn't it?

Marmaduke 12/4/2012 | 11:03:27 PM
re: Hyperchip Lands $43M in Financing > >2) I'll admit to being human: I'm jealous that
> >my company isn't receiving similar treatment
> >from my gouvernment!

> Perhaps the fact that you aren't
> receiving funding has nothing to
> do with the government. :)

What's your title at Hyperchip ?
<<   <   Page 2 / 8   >   >>
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