Sept. 11, 2002 — Lightconnect Inc., a Newark, Calif.-based supplier of MEMS-based components and modules for optical networks, has secured $9 million in its third round of funding.
The round was led by Sevin Rosen Funds. Incubic LLC, Morgenthaler Ventures, U.S. Trust, U.S. Venture Partners and Optical Capital Group also participated. All are previous investors in the company.
According to David Fenner, vice president of finance, the company’s most immediate goal was to strengthen its cash position to reassure customers. “They want to make sure we have a strong balance sheet,” he said. “We knew at some point in the next six months we would need to go out and get some funding. We decided to do it sooner rather than later.”
Other goals for the financing include expanding business development and marketing activities and continuing new product development. Fenner said the company has significantly increased production of its variable optical attenuators in response to increased demand from customers.
Founded in 1999, Lightconnect previously announced $8.4 million in first round funding in June 2000, and $15.8 million in second round funding in July 2001, which was later extended to $16.5 million. Fenner said current financing is sufficient to carry the company well into 2004, and subsequent fund raising will be dictated by market conditions.