Transphorm Seals $25M Series D

Transphorm Inc. has closed a $25 million Series D financing round from Quantum Strategic Partners Ltd., a private investment fund managed by Soros Fund Management, and existing investors Kleiner Perkins Caufield & Byers, Google Ventures, Foundation Capital and Lux Capital. The latest round brings Transphorm’s total funding to $63 million. The company, which launched in February, will use the money to continue development of its compact power conversion technology.


Transphorm Inc., redefining energy efficiency with the world’s most efficient and compact power conversion technology, has completed a $25 million Series D financing round with Quantum Strategic Partners Ltd., a private investment fund managed by Soros Fund Management LLC, and existing investors Kleiner Perkins Caufield & Byers, Google Ventures, Foundation Capital and Lux Capital. This brings the total capital raised from all rounds to $63 million. Transphorm will use the funding to continue solving the multi-billion dollar power waste problem, which occurs whenever electricity from the grid is converted into usable electric power. Since the company launch in February 2011, Transphorm has successfully released the first complete solution to eliminating power waste, using its breakthrough Gallium Nitride (GaN) based power conversion modules.

“This investment from our top-tier investor partners is a testament to the achievements of the Transphorm team commercializing a Total GaN solution for next-generation power conversion,” said Umesh Mishra, CEO of Transphorm. “Transphorm is sparking a revolution in energy efficiency, paving the way for the mass production of consumer, commercial and industrial technology products designed for optimum electrical efficiency.”

Transphorm’s Total GaN solution reduces power waste by 90 percent, and simplifies the design and manufacturing of a wide variety of electrical systems and devices, including motor drives, power supplies and inverters for solar panels and electric vehicles. In recent months Transphorm has increased its customer set by 50 percent, and expanded its operations by 30 percent to accommodate demand.

“Transphorm will use the new funding to continue our expansion and scale up to meet growing customer demand for our products,” said Primit Parikh, President of Transphorm. “The Series D financing enables us to grow our facilities, accelerate product development, and deepen engagement with customers. Above all, it allows us to execute rapidly on our customers’ roadmaps.”

The world’s power infrastructure must become radically more efficient to meet the energy and environmental challenges of the future. Inefficient electric power conversion results in lost energy that costs the United States economy $40 billion a year and is equivalent to the output of 300 coal plants.

The Advanced Research Projects Agency-Energy (ARPA-E) awarded Transphorm $2.95 million to invent beyond state-of-the-art, normally-off GaN switches while moving their GaN platform to low-cost silicon substrates. “Through ARPA-E funding, innovation in next generation power electronics has put the U.S. in a leadership position with GaN-on-Si and motor control,” said Rajeev Ram, Program Director at ARPA-E. “Efficient electronically controlled motors can save over $13 billion annually in the U.S. with enough energy savings to power 13 million homes.”

Transphorm combines cutting edge materials technology with a world-class team skilled at bringing next-generation power conversion products to market. At the Applied Power Electronics Conference (APEC) in March 2011, Transphorm launched its first product: a power diode based on its patented, high-performance EZ GaN(TM) technology. To demonstrate the performance advantage of its patented GaN based technology, Transphorm showcased at the APEC exhibition a Total GaN(TM) based, DC-to-DC Boost Converter running at more than 99 percent efficiency. Shortly thereafter at the PCIM Europe Conference in May 2011, Transphorm unveiled its 600 volt EZ-GaN(TM) transistor, which displaces legacy Silicon-based power conversion technology and reduces switching losses by up to 95 percent. Also at PCIM, Transphorm demonstrated a 100 KHz 3-phase 2 kW inverter, showing the highest efficiency in its class. Today Transphorm is the only company offering a Total GaN(TM) solution for highly compact and efficient electric power conversion.

About Transphorm

Transphorm is redefining electric power conversion, providing cost-competitive and easy-to-embed power conversion modules that reduce costly energy loss by up to 90 percent, and simplify the design and manufacturing of motor drives, power supplies and inverters for solar panels and electric vehicles. From material technology and device fabrication to circuit design and module assembly, Transphorm designs and delivers its power conversion devices and modules to meet the needs of global customers, helping them scale quickly and save money. By creating an ecosystem of electrical systems manufacturers powered by Transphorm, the company accelerates the adoption of application-specific power modules and paves the way for the next generation of electrical systems designed for optimal efficiency. To learn more about Transphorm, please visit

About Quantum Strategic Partners Ltd.

Quantum Strategic Partners, Ltd. is a fund managed by Soros Fund Management LLC engaged in acquiring, building and investing in world–class companies and assets that can generate strong value over long horizons.

About Foundation Capital

Founded in 1995, Foundation Capital is a venture capital firm with a single purpose: building great companies. It is this entrepreneurial spirit along with a deep technical expertise that gives the partners the understanding, perspective, and enthusiasm to help promising companies in their formative stages. Foundation Capital targets innovative opportunities in cleantech, consumer Internet and infrastructure; telecommunications and networking; and enterprise software and on-demand services.

About Google Ventures

Google Ventures is the venture capital arm of Google Inc. We seek to discover and help develop great companies, and believe in the power of entrepreneurs to do amazing things. Our investments range from seed to late stage, across a broad range of industries, including consumer Internet, digital media, software, hardware, and biotechnology. We embrace the challenge of helping young companies grow from the proverbial garage to global relevance. For more information, visit

About Kleiner Perkins Caufield & Byers

Since its founding in 1972, Kleiner Perkins Caufield & Byers has backed entrepreneurs in over 500 ventures, including AOL,, Citrix, Compaq Computer, Electronic Arts, Genentech, Genomic Health, Google, Intuit, Juniper Networks, Netscape, Lotus, Sun Microsystems, Symantec, Verisign, and Xilinx. KPCB portfolio companies employ more than 250,000 people. More than 150 of the firm’s portfolio companies have gone public. Many other ventures have achieved success through mergers and acquisitions.

About Lux Capital

Lux Capital Management is a leading venture firm focused on founding, seed and early stage investments in emerging technologies. Lux takes an active role in helping entrepreneurs build successful businesses in Technology, Energy & Materials, and Life Sciences. The Lux investment team has founded more than 20 companies from scratch, including Caliper, Genocea, Illumina, Kala, Kurion, Lux Research, Nanosys, Neurocrine, and Vertex Pharmaceuticals.

Find new deal opportunities, super-charge your fundraising efforts and track top managers with VCJ. Get your FREE trial! Or subscribe now!