Oversubscribed Series C round led by premier venture capital firm Accel Partners
SANTA CLARA, CALIFORNIA April 20, 2005 - Xelerated, the price/performance leader in network processing, today announced that they have closed a $17 Million series C round with new investors Accel Partners and Amadeus Capital Partners. Xelerated's existing investors Atlas Venture and Alta Partners also participated in the round. The funding will be used to build out sales and support globally as well as to accelerate the development of next generation products.
"I am very excited with the addition of Accel Partners and Amadeus Capital Partners to our investor base," says Johan Börje, CEO of Xelerated. "With the backing of such solid investors and more than 15 customer designs hitting volume production this and next year, I am confident in our continued success. We now have a fully funded business plan taking us to profitability in 2006," Johan Börje concludes.
"Xelerated's Tier-1 customer engagements in the high-volume, high-growth metropolitan Ethernet market convinced us that Xelerated will emerge as the number one provider of merchant silicon for this segment. Their unique architecture and its ability to meet the demand for low-cost, feature-flexible Ethernet solutions clearly put Xelerated ahead of the competition," says Joe Golden, Accel Partners.
The Metro Ethernet equipment market hit $3.8 billion in 2004, and is projected to double to $7.6 billion by 2008, according to Infonetics Research. Xelerated's next generation chip, the X11, is specifically designed for Ethernet equipment and is the only network processor delivering the same cost per port as fixed function ASICs. The X11 has taped-out and first samples will be shipped to customers in July.
"Xelerated is one of only four companies left in the high-end NPU market, from a field of about a dozen. Fortunately, raising $17 Million now puts them at the right time and right place to enjoy the impending surge that is slated to grow the high-end NPU market by 101% from 2004 to 2005," says Eric Mantion, senior analyst at In-Stat.
Xelerated is a fabless semiconductor company in the data communications industry who has revolutionized the industry with its novel data-processing technology. Xelerated's award-winning network processors, based on a patented data-flow architecture combining ASIC efficiency with programmability, enable OEMs to build low cost, flexible network system solutions for a wide range of switching and routing platforms.
About Accel Partners
Founded in 1983, Accel Partners has a history of excellence and innovation in the venture capital business. The firm is dedicated to partnering with outstanding management teams to build world-class Internet, software and networking companies. With over $3 billion under management, Accel Partners has a long legacy of helping entrepreneurs build highly successful companies. Accel portfolio companies have completed IPOs that have created well over $100 billion in market capitalization. Accel has a history of backing category-defining companies, which include Actuate, Agile Software, AMCC, Arrowpoint, Foundry, Macromedia, Portal, Polycom/PictureTel, Uunet, Veritas, and Real Networks. For more information, visit the Accel Partners web site at www.accel.com
About Amadeus Capital Partners Limited
Amadeus invests venture capital in new technologies from offices in London and Cambridge, UK. Since its inception in 1997, Amadeus has backed 49 companies in the UK and continental Europe, covering computer hardware and software, mobile and fixed communications technologies and medical technologies. Investments include Cambridge Silicon Radio, Optos, Cambridge Broadband, Valista, Solexa, and AePONA. Successful realisations from the Amadeus portfolio include Entropic, bought by Microsoft and Element-14, bought by Broadcom Corporation. Xelerated is Amadeus' fourth investment in the Nordic region. Additional information is available at www.amadeuscapital.com
About Xelerated
Xelerated, the price/performance leader in network processing, is recognized as being the only network processor vendor to have combined the efficiency of an ASIC with the programmability of traditional network processors. This extraordinary efficiency translates into the most cost effective solution with the highest performance and lowest power consumption on the market. Xelerated's award-winning products target network equipment for the enterprise and metro Ethernet markets. The company has established a strong presence in the industry and has several tier-one customers and key partnerships with leading component vendors. The company was founded in August 2000 and has attracted to its ranks a number of the best talents in the networking industry from companies such as Agere, C-Port/Motorola, Ericsson, LSI Logic, SandCraft, SwitchCore and Zettacom. Xelerated has offices in Santa Clara, California, USA, and Stockholm, Sweden.