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May 15, 2006
VC To Leverage Indian Chip Design For Better Returns
A new VC fund, Silicon Capital, is going to try to cut the venture capital costs of funding chip startups by doing design in India, according to a brief in ElectronicsWire. The fund, about which we could not find any further public information, is basically institutionalizing what several European chip startups have already been doing to keep cash burn low.
We know the basic idea works, and that the fund has a famous founder, Rahul Sud, who co-founded Lattice Semiconductor and was until recently a top exec at Switzerland-based ST Micro. But we don't about the fund's size, its general partners, or who its limited partners are.
The Silicon Capital pitch:
The cost of designing a single chip of $35m to $50m has started to exceed the total funding available to a start-up through its first three funding stages,” said [fund founder Rahul] Sud.The funding doesn’t cover the cost of designing the chip. By using an India-centric design platform we can drastically lower the amount of venture capital required to go from start-up to sales and profits
Asked by how much it would reduce the VC funding, Sud replied: “By 50 per cent. If it costs $30m to $40m to develop a chip in Europe, doing it in India would cost $15m to $20m.”
Read - European-Indian venture invests in chip start-ups
Posted on May 15, 2006 07:40 AM | Posted to News And Updates | Permalink
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