EFFECT Photonics secures an additional $40 million in funding and announces partnership with Credo

Our portfolio company EFFECT Photonics, a leading developer of highly integrated optical solutions, has secured an additional $40 million in funding from a group of investors led by Invest-NL and Innovation Industries, along with other existing investors.

The new investment enables the company to accelerate product development and fuel go-to-market initiatives, specifically those related to its integrated coherent optical product portfolio and solutions that meet the industry need for disaggregation of the key components for the growing needs of coherent optical interfaces.

“We’re thankful to Invest-NL, Innovation Industries, and our other existing investors for their continued support and confidence in EFFECT Photonics mission and products,” said Roberto Marcoccia, CEO of EFFECT Photonics. “This investment positions us well to advance our portfolio of integrated optic solutions that will reshape the future of communications and positively disrupt the status quo.”

In addition, Credo, a NASDAQ-listed provider of high-speed connectivity solutions, and EFFECT Photonics announced plans to collaborate on the development of coherent Digital Signal Processor (DSP) merchant ICs featuring industry-leading power dissipation and performance. The DSPs are expected to deliver the capacity and reach needed to meet the explosive demands for connectivity and bandwidth and enable cost-effective network upgrades over existing physical fiber infrastructure. These merchant silicon offerings have the added benefit of giving customers the flexibility to choose from a variety of transceiver suppliers.

The two companies will work together to develop new coherent DSP products featuring EFFECT Photonics’ coherent DSP technology and Forward Error Correction (FEC), combined with Credo’s high-speed SerDes, I/Os, Analog to Digital Converters (ADCs), and Digital to Analog Converters (DACs). Credo will manufacture and manage the sales and supply channels of the co-developed merchant ICs, and provide complete design services and customer support.

The joint solutions will offer numerous benefits, including high performance, small size, excellent energy efficiency and cost-efficient production.

“Our field-proven coherent technology and Credo’s high-performance, power-efficient connectivity solutions and semiconductor manufacturing expertise provide a potent combination that we believe could truly revolutionize the network edge and access interconnect market,” said Harald Graber, Chief Commercial Officer at EFFECT Photonics. “The clear market need for this technology presents a truly exciting opportunity for both of our companies.”