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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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reoptic 12/4/2012 | 11:03:25 PM
re: Hyperchip Lands $43M in Financing Govt. subsidy or not, this puppy will run out of cash fast with so many people at company and with so long to go before they have product; that money won't last a year. With great valuations like $5M for Caspian, amazing the investors and the employees stay in. Market for the products small, risk high, competition tough, upside limited. Sounds great!
lightwork 12/4/2012 | 11:03:25 PM
re: Hyperchip Lands $43M in Financing

Why don't you guys relax, breathe by the nose,
and go look up who was the VC for Fore Systems.

Have a good weekend,

lightwork
goffer 12/4/2012 | 11:03:22 PM
re: Hyperchip Lands $43M in Financing love that comment to skeptic but would also add that unfortunately he must be the mail guy since he has no clue what he is talking about! Most of his post are full of bs.
goffer 12/4/2012 | 11:03:21 PM
re: Hyperchip Lands $43M in Financing The one from lurker.
Savaria 12/4/2012 | 11:03:21 PM
re: Hyperchip Lands $43M in Financing Wich comment???
skeptic 12/4/2012 | 11:03:21 PM
re: Hyperchip Lands $43M in Financing love that comment to skeptic but would also add that unfortunately he must be the mail guy since he has no clue what he is talking about!
-----------

So, if I'm so wrong, tell me what I was wrong
about:

Is hyperchip in customer trials with
a real system? And by real system, I mean
a "real" system not a software prototype or
a bunch of FPGAs pretending to be a system.

Did hyperchip have a "real" system at supercomm
last year?

Is hyperchip only being able to raise 12 million
or so from VCs this round a sign of strength? A
sign of investor confidence?


Belzebutt 12/4/2012 | 11:03:19 PM
re: Hyperchip Lands $43M in Financing Ok here's some details on the financing, as you can see Quebec does get someting for assuming the risk, contrary to what someone wrote in this thread.

http://www.canada.com/search/s...

If Hyperchip's products do take off, Quebec stands to get a piece of the action thanks to the loan, said Jean Lariv+¬e, vice-president (finance) at Investissement Qu+¬bec. Under the terms of the loan agreement, the agency has the option to buy, over the next 11 years, $10 million worth of shares in Hyperchip, at what shares in the company are worth today, he said.

The company has said it plans to eventually go public, and Barry said it is looking at "the latter half of 2003" for an initial public offering, though timing will depend on market conditions.

As for the $50 million, Lariv+¬e said it must be used to buy equipment. The loan has a 10-year term, with the interest rate based on prevailing commercial rates, he said. Hyperchip must start repaying the loan in three years, in quarterly instalments over the following seven years, he added.

Belzebutt 12/4/2012 | 11:03:19 PM
re: Hyperchip Lands $43M in Financing Quebec likes to subsidize certain industries, this is probably their attmpt to gain some mindshare in high-tech. They like to give deals to all their high-profile companies, e.g. Bombardier. The funny thing is, here they're giving a deal to a private company, virtually unknown in the "real world". I think there's a good chance the VCs or the president are good chums with somebody in the Quebec government and pulled some strings.
goffer 12/4/2012 | 11:03:18 PM
re: Hyperchip Lands $43M in Financing Gor info from a very good source

So, if I'm so wrong, tell me what I was wrong
about:

Is hyperchip in customer trials with
a real system? And by real system, I mean
a "real" system not a software prototype or
a bunch of FPGAs pretending to be a system.

A: Customer trials with two major carriers

Did hyperchip have a "real" system at supercomm
last year?


A: Did you see it!

Is hyperchip only being able to raise 12 million
or so from VCs this round a sign of strength? A
sign of investor confidence?

A: Maybe they don't really need it, ever thought of that!!! Could it be that your company is trying to get to where they are and obviously is not able to!
skeptic 12/4/2012 | 11:03:17 PM
re: Hyperchip Lands $43M in Financing Is hyperchip in customer trials with
a real system? And by real system, I mean
a "real" system not a software prototype or
a bunch of FPGAs pretending to be a system.

A: Customer trials with two major carriers

Did hyperchip have a "real" system at supercomm
last year?


A: Did you see it!
-------------------

You are not answering the question directly.
Are these real systems or are these something
less than real systems? To put it very simply
for you is what was shown at supercomm and
what is in customer trials a complete system
with all ASICs intended for the product in the
product.

-----------

Is hyperchip only being able to raise 12 million
or so from VCs this round a sign of strength? A
sign of investor confidence?

A: Maybe they don't really need it, ever thought of that!!!
-------------

No, I can't say that I have. A startup the size
of hyperchip burns money fast. And with the
headcount of the company, it doesn't seem
credible to claim that they don't need more money
about now.

And the amount private investors put into a
company is in some sense an indication of what
they think of the company. And 12 million total
private money says they don't think much of it.


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