Irvine-based chip startup Clariphy Communications Inc. said Wednesday it landed $24 million in a third round of venture funding.
Clariphy makes chips that run optical networks, which use light waves to transmit data.
Clariphy’s chips let network operators more easily upgrade their systems and move data faster across older networks.
The company is set to use the money to develop and produce three chip products.
“The reason we raised this round is to have the cash to really focus on building out our product portfolio and our revenue,” Chief Executive Paul Voois said. “We are very focused over the next 18 months on rolling out new products.”
Clariphy’s chips send, receive and decode data. They extend the reach of an optical network by extracting data from a signal that may have changed in transit.
“We are building chips for the fastest, newest networks, at lower cost and power,” Voois said.
All of Clariphy’s existing venture investors participated in the round, including Menlo Park’s Onset Ventures, Atherton-based Pacific General Ventures and Palo Alto’s Norwest Venture Partners and Allegis Capital.
The company had a few other strategic investors that weren’t disclosed.
The financing included new investor Oclaro Inc. of San Jose, which makes a small mechanical part of a laser called a diode.
Oclaro, which contributed $7.5 million to the round, is a customer of Clariphy.
Oclaro also has other local ties.
A year ago, Irvine-based Newport Corp., a maker of lasers used in chip making, swapped part of its business with longtime rival Oclaro.
Under the terms of the deal, Newport acquired a chunk of Oclaro’s business and vice versa.
Only a small amount of money changed hands. Newport paid Oclaro $3 million in cash to account for revenue differences between the two businesses.
The deal helped Newport consolidate some operations in China, cut costs and unload an unprofitable part of its business.
In 2004, Clariphy raised roughly $8 million in venture funding and moved its headquarters from Santa Clara to Irvine. It raised a follow-on to its first round, bringing the total to $26 million.
Clariphy raised a second round that wasn’t disclosed a few years ago.
It has some 40 workers here.
Clariphy’s closest competitor is San Jose’s CoreOptics Inc., which last week was acquired by networking kingpin Cisco Systems Inc. for $99 million.
