VC-Backed Busts: Sequoia Communications

#6. Sequoia Communications

San Diego-based fabless RF semiconductor company

The company raised around $75 million between 2000 and 2008, including around $10 million in Series F funding last September. Backers included BlueRun Ventures, Gabriel Venture Partners, Huntington Ventures, Motorola Ventures and Tallwood Venture Capital.

[Update: Xconomy ran a story saying that Sequoia had raised $86m, which would put it a bit higher on our list. There often are discrepencies in funding totals — particularly for defunct companies — so we’re just going to stick with figures from our VentureXpert database when available. Suffice to say, both $75m and $86m are a lot to sink into a shuttered company.]

What happened?
This was simply a case of VCs running out of patience and money, a toxic combination in an already-difficult economy for chipmakers. Sequoia was behind schedule in producing its tranceivers for mobile devices, and proved unable to secure an outside investor to lead (yet another) round. The company officially shut down in August, laying off all 30 employees.

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