Point2 Technology, a leading provider of cost-effective, high-performance, and low-power SoC connectivity solutions, announced today that it has raised $23 million in Series B funding. The round was led by Bosch Ventures and Molex Ventures, with participation from existing investors Samsung Ventures and SK Telecom Ventures.
The company plans to use the new capital to expand its product portfolio, accelerate its global market penetration, and strengthen its R&D capabilities. Point2 Technology aims to revolutionize the multi-terabit interconnect market for AI, cloud, and automotive applications.
Point2 Technology’s innovative solutions
Point2 Technology, founded in 2016 and headquartered in San Jose, California, develops ultra-low power, low-latency, point-to-point interconnect and range enhancement SoC solutions. The company’s products are designed to meet the bandwidth requirements of hyperscale AI/ML data centers and 5G infrastructure.
The company’s flagship product is the Cloud Connect Engine, a 56G PAM4 mixed-signal SoC that enables ultra-thin and energy-efficient active electrical cables (AECs) for 400G and 800G interconnects. The Cloud Connect Engine delivers 40% lower power and 40% lower cable volume than conventional solutions, while providing 75% lower latency and higher throughput for AI/ML applications.
Another key product is the RangeXtender, a single-chip electronic dispersion compensation (EDC) mixed-signal SoC that enables 40 km reach for 25G/50G/100G optical links. The RangeXtender reduces the total cost of ownership (TCO) by 40% by upgrading existing fiber network installations without requiring additional amplifiers or repeaters.
The company also offers the Raon, a cloud-optimized CDR/retimer SoC that slashes power for 400G/800G interconnects, and the 5G RangeXtender, a solution that extends the reach of 5G fronthaul and backhaul networks.
Series B funding details and benefits
The Series B funding round follows the company’s successful Series A round in 2019, which raised $22 million. The company has also received several industry awards and recognitions, such as the 2020 Lightwave Innovation Reviews, the 2020 EE Times Silicon 60, and the 2020 GSA Most Respected Private Semiconductor Company.
The Series B round brings the company’s total funding to $45 million and values the company at over $100 million. The company’s valuation reflects its strong growth potential, as the global market for high-speed interconnects is expected to reach $41 billion by 2025, according to a report by MarketsandMarkets.
The new funding will enable the company to scale up its production, expand its customer base, and develop new products for emerging markets. The company will also benefit from the strategic partnerships with Bosch and Molex, two leading players in the automotive and data center sectors, respectively.
Bosch Ventures, the corporate venture capital arm of Bosch Group, invests in innovative startups that have the potential to shape the future of mobility, industrial technology, energy, and smart living. Bosch Ventures will support Point2 Technology with its expertise and network in the automotive industry, where high-speed connectivity is a key enabler for autonomous driving, advanced driver assistance systems (ADAS), and infotainment.
Molex Ventures, the venture capital subsidiary of Molex, a leading provider of electronic solutions, invests in companies that are developing breakthrough technologies for data centers, 5G, and industrial automation. Molex Ventures will collaborate with Point2 Technology to develop and market 400G AECs for data center and HPC applications, leveraging Molex’s global reach and manufacturing capabilities.
Quotes from the company and the investors
Hyung-Jin Kim, the CEO and co-founder of Point2 Technology, said:
“We are thrilled to have Bosch Ventures and Molex Ventures join our Series B round as strategic investors. Their investment validates our vision and technology, and will enable us to accelerate our growth and innovation in the multi-terabit interconnect market. We look forward to working with them to deliver best-in-class solutions for our customers and partners.”
Hongquan Jiang, a partner at Bosch Ventures, said:
“We are impressed by Point2 Technology’s team, technology, and products, which address the critical challenges of high-speed connectivity for AI, cloud, and automotive applications. We believe that Point2 Technology has the potential to become a leader in this field, and we are excited to support them with our expertise and network in the automotive industry.”
Lily Yeung, a vice president at Molex Ventures, said:
“We are delighted to partner with Point2 Technology, a pioneer and innovator in the high-speed interconnect market. We see a great synergy between our companies, as we share a common vision and goal of enabling the next generation of data center and HPC solutions. We look forward to collaborating with Point2 Technology to develop and market 400G AECs that offer superior performance, reliability, and efficiency.”
