Denmark: Iptronics closes $10 million round

Investment round completed

IPtronics A/S, of Roskilde, Denmark, a supplier of silicon for parallel optical applications, has closed a $10 million second round funding co-led by Creandum and Sunstone Capital. Existing investor 10IPT10 and members of the management team took part.

The money will be used to accelerate sales and product development of IPtronics’ integrated circuits for parallel optical interconnects. These are forecast to replace electrical high speed connections in next generation computer systems and storage networks.

Founded in 2003 by a group of former Giga A/S and Intel managers, IPtronics has developed a chip technology that enables low-cost, low-power and small-size optical interconnects that will enable computer manufacturers to overcome the physical constraints of using copper-based connections over high-speed interfaces and backplanes.

“Parallel optical interconnect is a market at the verge of the point of inflection and IPtronics is well positioned to become a market leader,” said Jimmy Fussing Nielsen, Managing Partner, Sunstone Capital Technology Ventures.

“The company has already significant revenue growth and is engaged with leading customers in both US and Japan. As manufacturers of computer systems, storage networks and mobile phones increasingly are looking at lower power consumption while increasing connectivity capacity, IPtronics has a very interesting position as leading supplier in this field,” adds Martin Hauge, General Partner, Creandum.

“Power consumption is the paramount challenge for higher-speeds electrical interconnects, and here optical interconnects play a potential vital role in the next generation computer systems,” said IPtronics CEO Niels Finseth. “IPtronics holds the key technology to enable this market,” he claimed.