Tensilica Inc. raised $20 million July 23 from strategic and venture investors in its third, and likely final, round of private equity financing. The Santa Clara, Calif.-based company manufactures microprocessor cores and software development tools that enable designers to build more detailed computer chips in less time and more cost effectively.
The round, which was led by existing investor Foundation Capital of Menlo Park, Calif., included strategic investments from Altera Corp., Cisco Systems Inc., Comdisco Ventures and Matasushita Electric Industrial Co. of Japan. Existing investors Oak Investment Partners and Worldview Technology Partners returned to the round at pro rata.
“Proceeds from this financing will fuel our growth as we introduce our product to the market in the next eight to nine months,” said Chief Executive Chris Rowen. “Our customers will achieve significantly higher levels of performance by factors of five or 10 than with traditional microprocessors.”
Tensilica will bolster its sales and marketing efforts by adding to its internal sales staff. The company will also market and distribute its products more aggressively on the Internet.
“The technology is so revolutionary that the typical distribution channel of resellers does not communicate as perfectly,” Rowen said.
Rowen said Tensilica’s next round of financing will likely be in the public markets, although he has not yet determined a timetable for a public offering.
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