Teknovus Takes In $13M

First, Passave files for an IPO. Now Teknovus closes its third round, nearly doubling its funding total

August 29, 2005

2 Min Read
Teknovus Takes In $13M

Money is flowing fast for the PON chip crowd, as Teknovus Inc. is closing a $13 million round.

The money comes hard on the heels of rival Passave Inc.'s IPO filing last week. Teknovus's funding now totals $33 million, including a $9 million series B, announced in June 2004, and a $7 million "A" round in 2002 (see Profitable Passave Pushes for IPO, Teknovus Closes $9M Round, Hires CEO, and Teknovus Grabs $5M).

Both companies are seeing big possibilities in Asia. Passave was first to market, scoring key wins with the OEMs providing EPON gear for {dirlink 5|135} in Japan. But Teknovus claims it's taken the lead. Thanks to a relationship with equipment provider Corecess Inc., Teknovus claims to be the only EPON chip supplier that's gotten into {dirlink 5|99}; in Japan, the company also claims KDDI Corp. is using its chips (see Teknovus, Corecess Win KT Deal).

Not surprisingly, then, Teknovus has turned to Asian sources for its money. Infotech Ventures Ltd., from Beijing, and Komura, from Tokyo, joined this round as new investors, and Teknovus had previously tapped Mitsubishi Corp., NEC Electronics Corp. (which wasn't listed as a participant in this round), and Samsung Ventures America for funding as well.

Others participating in this round include new investor Venture Tech Alliance and prior investors Partech International, Portview Communications Partners LP, SUITgrowth Fund, and U.S. Venture Partners.

BroadLight Inc. is the third PON-chip startup in the trio, although the company has concentrated on ATM-based PONs rather than EPON. BroadLight's most recent funding came about a year ago, to the tune of $17.9 million (see BroadLight Gets More Financing).

DSL chip vendor Centillium Communications Inc. (Nasdaq: CTLM) intends to join the PON market, too. And some bigger companies are in the mix as well, such as Freescale Semiconductor Inc. (NYSE: FSL).

— Craig Matsumoto, Senior Editor, Light Reading

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