Ambient Sound Investments, the fund started by Skype co-founders, said it achieved its
first third portfolio company exist with the sale of Modesat Communications by Xilinx. Terms of the deal were not released.
(Corrected: A spokesperson for Ambient Sound Investments incorrectly identified Modesat Communications as the fund’s first exit. It is the third.)
ASSETS OF ESTONIAN WIRELESS MODEM VENTURE MODESAT COMMUNICATIONS ACQUIRED BY XILINX; KEY EXIT FOR AMBIENT SOUND INVESTMENTS
Skype Co-Founders’ Investment Company Realizes Exit From First Investment; Modesat’s Assets Form Xilinx Estonia, With Employees Based in San Diego and Tallinn
FOR RELEASE ON: TUESDAY, SEPTEMBER 18, 2012
TALLINN, ESTONIA and SAN DIEGO, CA – Ambient Sound Investments (ASI), the Skype co-founders’ investment fund, together with co-investors the Estonian Development Fund and Caplia Invest, today announced that they have successfully realized the exit of Modesat Communications, certain assets of which were acquired by Xilinx (NASDAW: XLNX), a leader in the programmable logic devices (PLD) sector. The deal entailed the sale of substantially all of Modesat’s assets. Terms of the deal remain undisclosed based on the agreement of the parties.
Founded in 2005, Modesat was the initial investment from ASI, which was founded in 2006.
“Modesat’s unique patented technology enables the creation of more powerful and cheaper modems. Such modems are used in telecommunication infrastructures for wireless communication, where the demand is constantly growing. Modesat is proof that the Central and Eastern European (CEE) region has internationally competitive and attractive companies,” said Margus Uudam, Head of Venture Capital Investments at ASI. “Modesat reflects our investment focus – we look for strong engineer and business teams together with unique technologies and international ambition,” he added. Uudam also said that one of the key components for success was great co-operation with Modesat Communications’ founder Tarmo Pihl.
“The profitability and the interest from international high level players prove the focus of our investment strategy, which creates new added value through Estonian technology companies,“ said Heidi Kakko, in charge of the venture capital investments of the Estonian Development Fund. “The Estonian Development Fund actively invests together with private co-investors into young innovative Estonian companies that have international growth potential,“ added Kakko.
“Capital from local investors and support from the public sector as R&D grants, apart from the world-class team, have been two important factors which have helped us grown into an internationally competitive company. For Modesat, the deal means a jump in development, due to which we will be able to provide our products to the world’s largest telecommunication companies,” said Tarmo Pihl, founder of Modesat Communications.
Xilinx has announced that it plans to continue its activities in Estonia, investing into the development of high value-added products in its Tallinn office, which has 10 employees.
About Estonian Development Fund
The Estonian Development Fund is a foresight think-tank and venture capital fund established by the Parliament of Estonia, with the objectives of opening up future opportunities for the Estonian economy through foresight work and investing into innovative and ambitious Estonian technology companies. The Estonian Development Fund has the largest portfolio of Estonian innovative startups with currently 16 investments.
About Ambient Sound Investments (ASI)
Ambient Sound Investments (ASI) is an investment group founded in 2003 with the objective of managing and investing the assets of Skype’s four Estonian founding engineers. ASI primarily finances international start-up technology companies from its own funds. The company has financed over 30 technology start-ups worldwide in Asia, the United States, Western and Eastern Europe.