Santa Clara, California â November 22, 2004 â Xoomsys Inc., a Silicon Valley start-up company focused on enabling large-scale circuit simulation, today announced that it has secured $7 million in its first round of venture financing.
Benchmark Capital and Morgenthaler Ventures, two highly respected top tier venture capital firms, invested in the round. In addition, industry luminaries Naren Gupta, vice chairman of Wind River Systems; and Buno Pati, founder and CEO of Numerical Technologies have also invested in Xoomsys.
The funding will enable Xoomsys to develop its products, expand its research and development team and will also help in starting up the sales, marketing and support activities.
Alex Balkanski from Benchmark Capital and Bob Pavey from Morgenthaler Ventures will join the Xoomsys board of directors. Alex Balkanski, general partner at Benchmark Capital, led C-Cube and DiviCom, two pioneering companies that drove the MPEG standard to dominance in consumer electronics and broadcasting. Mr. Balkanski has vast operational experience in the high-tech industry that will help Xoomsys as it establishes itself as a strong player in the market for IC design products.
âI am impressed with the talented and energetic team at Xoomsys, and I share its passion for building a company of lasting value,â said Mr. Balkanski.
Bob Pavey, general partner at Morgenthaler Ventures, is a 35-year veteran of the venture capital industry and past president of the National Venture Capital Association. Mr. Pavey and Morgenthaler Ventures have backed such successful companies as Apple Computer, Synopsys, Verifone, and Atria. Mr. Paveyâs presence on the Xoomsys board will be invaluable as Xoomsys grows, from a small team focused on technology development, to a provider of large-scale circuit simulation solution to customers worldwide.
âWe believe that the migration of IC geometries from 130nm to 90nm and smaller necessitates new approaches to EDA,â said Mr. Pavey. âI believe Xoomsys has the potential to become one of the leaders in the next generation of electronic design.â
Buno Pati, Xoomsysâ chairman of the board, said, âXoomsys has made a true breakthrough in technology that I believe will be a valuable and essential contribution to the semiconductor industry. I am excited by this opportunity to help build a great company on such a strong foundation.â
Mr. Pati was the CEO and founder of Numerical Technologies Inc, which he led through a successful IPO in 2000 and acquisition by Synopsys (Nasdaq: SNPS) in 2003. Numerical Technologies pioneered subwavelength semiconductor design and manufacturing technologies that are today essential for the industryâs continued migration to smaller silicon devices. Mr. Pati, who also served as interim CEO of Xoomsys from June 2004 to October 2004, brings to Xoomsys his experience in building successful companies from early stages and his extensive knowledge of the IC design and semiconductor industries.
âWe are delighted that such a high caliber group of investors have placed their confidence in the Xoomsys team, technology, and market opportunity,â said Anjaneya Thakar, president and CEO of Xoomsys. âWe are determined to build a successful company that delivers compelling solutions to our customers. This round of funding gives us the foundation to execute on our plan.â
Xoomsys is developing a distributed processing solution for accurate large-scale circuit simulation using industry-standard circuit simulators and inexpensive Linux computing clusters. Xoomsys enables orders of magnitude gain in simulation throughput without any loss in accuracy. Accurate large-scale circuit simulation is a critical requirement for silicon success as integrated circuits migrate to smaller geometries with high operating frequencies and low power consumption.
About Benchmark Capital
Benchmark Capital was founded in 1995 to help talented entrepreneurs build great technology companies. Benchmarkâs partners take a team-oriented, labor-intensive approach to venture investing to deliver a superior level of service to the firmâs portfolio companies. Benchmarkâs portfolio includes franchise companies such as eBay (Nasdaq: EBAY), Juniper Networks (Nasdaq: JNPR) and Red Hat (Nasdaq: RHAT). Managing more than $2.5 billion in committed venture capital, Benchmark focuses on investing in entrepreneurs with original ideas. For more information on Benchmark, visit its web site at www.benchmark.com.
About Morgenthaler Ventures
Founded in 1968, Morgenthaler is a leading, national venture-capital firm with offices in Menlo Park, CA (headquarters); Boston, MA; Cleveland, OH; Boulder, CO; and Princeton, NJ. It focuses its investments in information technology and life sciences. Morgenthaler's electronic design and semiconductor investments include such industry leaders as Synopsys, Microchip Technology, and Vitesse, as well as newer companies such as Cortina and Brion. Morgenthaler has a total of $2 billion under management. Its most recent fund, capitalized at $850 million, was raised in July of 2001. The firm has funded more than 200 companies over its 36-year history.