SIMON TUCK
Saturday, January 19, 2002
OTTAWA -- A Montreal
telecommunications equipment company has landed $70-million in its
fourth round of venture capital, likely making the firm's total
financing the most ever for a Canadian startup.
Hyperchip Inc., which says it has built the world's
fastest high-speed router for telecommunications traffic, has now
attracted at least $215-million in financing over the past two
years. While that figure is believed to set a new record, the
$70-million round is also one of the largest deals for a Canadian
firm this year.
"I guess somebody must believe in us," said Brian Barry, the
company's chief executive officer. "We're very hot."
The financing deal is further evidence that the strongest and
more advanced private technology firms are still gaining access to
capital during the industry's downturn. Only the whopping
$144-million invested in Ottawa-based Solinet Systems Inc. in June
tops Hyperchip's deal within the Canadian tech industry this
year.
Mr. Barry said the company will use the new money to get its
products to market faster as it prepares to compete against both
established router makers and startups.
Hyperchip, which has about 250 of its 280 employees in
Montreal, said its products are now in customer trials and are
expected to be widely available by the end of the third quarter of
this calendar year.
The financing round was led by TechnoCap Inc., a Montreal-based
venture fund, and it also includes a $50-million loan from
Investissement Québec, an arm of the provincial government.
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