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PREMIUM

Angels better than VCs?

Recent Volatility

Kerry & Snowe rejuvenate the US SBIC program

Benchmark Capital creates Balderton Capital

China venture capital grew 55 percent in 2006

ETF closes $70m in first European cleantech fund

New 25m early stage venture fund launched along with IQ Angel sector experts

Pond Ventures: a VC fund with a live technology pulse

Scotlands Braveheart plans AIM flotation amid nervous market

Seraphim Capital, an angel-led fund with a mission

Chilli Profile: Quotient Diagnostics

INSIDE Contactless recapitalizes with new round of $25m

Applied Materials purchase of HCT Shaping Systems SA

ARCs acquistion of Tenison EDA: a real Bargain

Giddy steps down from Amino

Mobile multimedia

MPEG4 rising fast

Sweet vengeance for Transmeta as Intel forks out $250m

CEVA DSPs shipping to 80 percent of handset OEMs

Sony Ericsson ASP drops but volume grows 59%

Tenison EDA acquisition by ARC

China to adopt single corporate rate tax for both domestic and foreign entities, and property rights law

Automotive semiconductor firm ELMOS raises sales and net income

Trade Commissions final decision in Rambus standard setting case

CEVA cost-cutting drive for profitability impacts first half revenue growth

US angel networks go through a renaissance

Ignios final curtain: lessons learned

Can start-ups compete directly with the giant gorillas?

Broadband Market Statistics

OECD Inflation Data

Europe revives optics

Cellular modems on rise

MIDs boost mobile data

Future market for PNDs

Multi-standard DTV

Digital asset opps

Nokia lowers outlook

AM-OLED debate

Mobile phones saturation

Decline in RF for 3G

Enhanced mobile HSPA

3G iPhone teardown

Solar cell parity

'Flirting with Europeans'

HSPA mobile broadband deal

GPS to hit $1bn

Downturn in all economies

Wireless semis surpass overall chips

Optoelectronics growth

Photovoltaic silicon shortage

Q108 mobile handset top five

LTE launch raises competition for WiMAX

Toshiba Exits HD-DVD

WiMAX Roll Out

LEDs drive lighting

Blade server shipments

2008 smart card mkt

LEDs and Traditional Lighting

Nintendo displaces Sony

Maps Key Part of GPS

WiFi Radio

LCD-TV revenue to reach $7.4 billion in 2011

PC Market

Microcontrollers growth: Renesas takes lion share

Optics market boost with Ericsson high capacity IPTV

OLED shipments will make a small mark in TV market

Electronic shelf display (ESL) to lead small display market

OECD broadband subscribers to hit 200 million

Content drives up mobile phone ARPU as voice declines

PMP/MP3 player is fastest growing market in consumer electronics

Is there a future for DAB, DVB-H, mobile TV in automotive infotainment?

Pay-TV, IPTV to drive premium video services market to exceed $277 billion by 2010

Freescale Semiconductor leads in $18bn automotive IC market

How much do the components cost in an iPhone?

How much do the components cost in an iPhone?

Will Europe feature in the top fabless list?

Indias chip design industry set to nearly quadruple by 2010

PlayStation 3 offers supercomputer performance at PC pricing

Smartphone sales rising fast

Quanta and Asustek lead ODM chip spending in 2006

iPod Nano teardown reveals much reduced BoM over earlier versions

Koreans take the lead over China in global television market

LED future bright despite 2005 slowdown

Clock generation market to double in five years

Broadband/Internet potentially the most disruptive market for video-on-demand (VoD)

IPTV subscriber base set for explosive growth

Temperature sensor ICs growing again

Blood pressure monitoring and tyre pressure sensors market to double

Is Toshiba taking loss on HD-DVD shipments?

Chinas top 10 IC design companies - opportunities for HTSUs

New thermal IC products - cool solutions

key trends in the Indian telecom industry

iPod and cell phones intensify market for OLED displays

Real world signal management drives $50 billion mixed-signal market

The big semiconductor companys dilemma

Promising science: magnetic logic

China-India GDP

Indian Bio startup support

Indian Economy in 2008

Chinese EMV market

Nanotech challenges

Ericsson Deal With Idea Cellular

Rural Internet Pilot

China 3G license incentives

China GPS chipsets

India $6.59bn Consumer Electronics

Indian Telecom $4.5bn capex spend

Early Stage fund marriages

London acquires Yorkshire

Increased MEA M&A

US IPO rebounds

Europe IPO/M&A slows

Motorolas acquisition of TTPCom will unnerve IP market

Rajeev Madhavan

Capital Markets Turbulence

Packet Switched Networks

Draft Executive Order

SBIR 20th year

3i Quits Venture Capital

IMEC Taiwan benefits start-ups

Should VC-backed companies be entitled to government grants?

Small Firms' Research

PREMIUM

Narayan Murthy, Infosys founder, speaks in London

Women entreps think tank gets 540k

BERR changes

Investment in natural speech for games

Awards reach Europe VCs

Mobile-based social network targets India

Schroder heads Arma USA

3i expert joins Wellington

Banks & small business

Motorola's deal for Jha

EDA test firm's 750k

DN Capital opens in US

SWRDA fastTrack2

Young Apprentice winner

Miracor receives 6 million

New ETF team member from Goldman Sachs

NTRglobal receives 22m

Glover review - SME feedback wanted

North-West technology network kicks off

Electronic nose tech

Enterprising Britian finalists

$4.5m for ChipVision

Ericsson reverse stock split

Schools' design challenge

$8m for travel web site

Review site funding and French portal

Selective public procurement for SMEs/HTSUs

Silicon Valley Boomer Business Competition

Firms go online to choose licensable tech

Techno gadgets burning out Brits

Serial Web entrepreneur now at Wellington Partners

More female entrepreneurs wanted

HuaXun 'sea turtles' and CEVA deliver software GPS

$10m for in-building wireless tech

$220m clean tech fund closes

5th exit for The Capital Fund

Flight search engine's new chairman

lastminute team gets second Spark

Mobius acquires Harvard technology license

SMS innovator secures 450k

FirstCapital assists Multimap in $50m buyout

Toumaz adds Australian patent

Virtual awards for mobile content

Fibre to Premises & WiFi gets boost

France stock options

Mi-Pay receives 1.8m

New VC for early stage tech

2008 tech growth despite gloom

NMI honours Ian Burnett

Scottish university projects get 3.3M

Pulsic board appoints EDA veteran

600k for optical imaging

Join trade mission to India

London Technology Fund makes first exit

CamSemi eastern drive

ETT call for web start-ups d/l 30 Sep

XMOS raises $16m

No 9 to 5 for entreps

Belgacom satellite business acquired

Inxstor gets 600k funding

O2 entrepreneur of the year

OnRelay funding lead by IQ Capital

goSupermodel: dot bomb v2.0?

Nanotech innovator raises 225k for LEDs

Vicky Pryce appointed to Government Economic Service

Archives..

UKFI and early stage funds

A real-life dragons den, not reality TV

Co-founders' 44m cash jackpot

Intelligent mannequins

80m R&D tax credit boost

Nokia/Qualcomm patent

Bill Gates retires, but..

Biofuels debate

UK VC capital in decline

Can EIS survive?

VCs follow new global innovation

UK's hidden innovators

Doing it in style in China

Bill Gates House Science Cttee speech

UK budget 08

A new UK talent strategy and SMEs

New Scottish can do spirit

New BERR team

Pesistence through volatile markets

HTSU's caught up in private equity crossfire

UK entreps' poor self-confidence

Goodbye DTI: game, set and DIUS

Indian KPO is the real threat to European high-tech, not BPO

Budget 07: you have read the headlines - now read the analysis for high-tech start-ups

Independence for Technology Strategy Board (TSB)

UK businesses ignoring worlds fast growing economies are signing their death warrants

Check against delivery: Brown's Speech, Bangalore, India

Why do early stage investors stay glued to their domestic markets?

More editorials..

Antenova gets $10 million investment

Artimi raises $26.5 million in series B (R2) funding

Mirics: a fabless start-up with a clear vision

DiBcom

picoChip secures new VC fans and $20.5 million R3 funding

Esmertec IPO postponed

Smartdot

More Due Diligence..

4m alternative funds for West Midlands

300k investment in Bluetooth/Wi-Fi start-up

Semi investments drop 44%

Irish fabless bucks trend, secures $14m in R1

Israeli $2.3m VC funding

Intel leads solar 85m

MergeOptics rares towards IPO

CamSemi investments now total $30.5m

Scottish 1.3m grant to IC firm

No Israeli credit crunch

Cleantech investment peaks

Fuel cell tech funding

$14m for mobile voice apps

European VCs smell billion dollar exits

Use PE capital for overlooked markets

High-tech investors'optimism for 2008

Ex CSR VP leverages 1.2m in Camrivox

BoS pitches in with Oxford Angels

BoS pitches in with Oxford Angels

Israeli VCs hit six-year record

Oxford Capital tees off with new venture

Braveheart maiden results

Israeli investments to hit record $1.7bn

New ECF candidates Q407

Q307 Euro VC trends

Earlybird VC exit award

US angel trends 1H07

VCT honeymoon over

US VC deals

First half Israeli VC rises by 10% to hit $842 million

E-Synergy to manage new Emerald Fund for university research projects

European Q1 VC flat at 1.07 billion

Venture-backed M&A/IPO levels back to 2000 level

More investor trends..

Ericsson mobile moves in Africa

Low cost photonics silicon prototyping

California complacency

Renewables report: can UK meet target?

Worlds first 60GHz HD wireless chip is developed

Case report: patents/software in England

2m funding drives microfluidics tech

70m PC buyers want mobile broadband

iPhone revenue sharing

GSMA to study mass market potential of embedded mobile broadband

UK patents: top 10 consolidates

Major company law overhaul

Durham Scientific Crystals

UK R&D

Differentiating between corporate spin-outs/carve outs/corporate venturing

VC investment slows in Q2 2005

First half Israeli high-tech venture capital rises by 15%

The US SBIR and its relevance to the UK

UK technology VC investments fall by 17% in 2004

EMV (chip + PIN): show us the money?

Digital cinema gets a kick-start

More markets..

Motivational and educational

Objective and not condescending dragon

Academics must blame themselves if they dont patent

SFLG: independent ombudsman

SFLG sympathy: Bank managers are clueless

More right 2 reply..

Dialogue - Rajeev Madhavan

Gregory K. Hinckley

Robin Saxby

Walden Rhines

Simon Davidmann

Candace Johnson

David Srodzinski

SiGe pioneer joins semiconductor start-up

Richard Farleigh

Simon Davidmann

Gary Kildall

Walter Herriot

John Laurie

Amaratunga, CamSemi

More...

Outsourcing tips

R&D tax credits debate

Call for papers - VLSI2009

Lost years for UK innovation

Hard times, position your company for downturn

Green myths about corn ethanol

British Business Angels Association (BBAA) welcomes support for investment in early stage businesses

English Court Position on Computer Programs and Business Methods

The changing environment for life science funding

Patent, publish or perish?

More speakers corner..

Acuid in administration

MBO blues, part two

MBO blues, part one

Destructive acquisitions

The road to CEO hell

Doug Richard's downturn survival tips

Investing worst practices

To patent or not patent that is the question

Roll up for the 3GSM Congress

Understanding key venture finance terms

The global patent

Trademarks

Steve Jobs

Investor presentations

Law firm pioneers fixed legal fees for investment solution

Top start-up tips from Mike Baker

More trade secrets..

Accountants are tech-savvy

Entrep and angel reunited at Venturefest v8

Intelligent Mechanized Mannequins

Auto PR generator

Schoolmaster claims credit for entrepreneurship programmes

Mirror TV

About Uncle Thakur

10 - the prospect, the channel

9 - Partnering

8 - Product development

7 - Stock options

6 - Building the team

5 - The term sheet

4 - Pinning down the plan

3 - Seeds of excess

2 - Dinner brainstorm

1 - Drive-by-IPO


High-tech

Media

Chilli Domain Definitions

Chilli Value Test

Chilli Startup Definitions

SAMBiDS defined


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High-tech

Due Diligence: Ignios


By Bipin Parmar

Ignios is a post Chilli R1 Oxford, UK based IP (intellectual property) company founded in 2003 to address the emerging market of software programmable multicore SoC (systems on a chip) designs. The two co-founders Mark Lippett and Dan Chester had encountered many of the challenges of multicore designs in previous careers at Madge Networks, Texas Instruments and Chameleon Systems.

Management team
Rick Clucas, the current CEO of Ignios, joined the management team in June 2004. Rick has extensive startup and processor-based chip design management experience from his early days at ARC International where he was the CTO and one of the original founders. During this time, Rick pioneered and participated in the ongoing development of the world’s first configurable microprocessor IP core and many multicore design projects. His entrepreneurial skills were further honed by a brief stint at the investment bank Beeson Gregory, now merged with Evolution, and various non-executive positions at other startups.

Mark Lippett, CTO and co-founder of Ignios, comes with over 12 years experience of multicore and multiprocessor designs, embedded software development and architecture design gained in both systems equipment and chip-level design. His design management experience was gained at companies like Madge Networks and during four years running a design consultancy.

Dan Chester, VP of business development and co-founder of Ignios, has extensive experience in the semiconductor and EDA (electronic design automation) industries from his previous roles of application development and technical marketing positions at Altera and Synopsys. He also worked on multicore designs at Chameleon Systems.

The company currently employs nine people, with the majority of them engaged in r & d activity.

The motivation for starting Ignios came with a vision that the new emerging market for multicore chip designs could offer a vast improvement in chip performance. However multicore chips create a number of opportunities and challenges that have to be overcome for users to get access to the full benefit offered by these complex chips. Ignios licenses IP to companies developing multicore chips to improve the usability and efficiency of their products.

Vital statistics
Ignios was founded with a small amount of Chilli S2 and S3 seed capital from friends and family. This allowed sufficient time to build an effective prototype to demonstrate to potential investors and partners. Ignios managed to raise a Chilli R1 of $3.8m in January 2004 from Alice Labs, a Milan, Italy and Tel Aviv, Israel based early stage fund, as well as the investment fund of British Technology Group, which specialises in licensing and patent portfolio management. The company wants to bring in some additional investors when it raises a Chilli R2 round.

Ignios value proposition
Most car drivers know that pushing the engine speed doesn’t necessarily relate to a proportionate increase in car speed, and can result in poor fuel economy. Clever use of gears and levers can achieve the same speed with better fuel efficiency, without damaging the engine. In processor design, the higher the clock frequency (engine speed) is increased, the worse the power efficiency becomes, ultimately limiting the performance as the heat threatens to damage the chip.

In processor design, the answer to this speed/efficiency problem lies in separating out all the tasks to be performed so that they can be run on multiple processing resources on the same chip. Each one of these resources can be a different type of processor or, increasingly, a piece of hardwired logic. The resultant system can do the same amount (or more) work at a lower speed than a single processor running much faster. Each of the processing resources in a chip is referred to as a ‘core’, with the resultant architecture classified as being ‘multicore’.

Already the previous use of single-processor chips is hitting the limits, with Intel announcing that by 2006, the vast majority of its server and mobile processors will be dual-core designs. Other semiconductor vendors have similar programmes in the pipeline with further multicore design announcement from the likes of Freescale (ex Motorola), Broadcom and AMD. Cisco has announced a chip with 192 cores.

Although multicore designs offer a degree of magnitude improvement in performance, the biggest challenge is to make effective use of this added performance, managing which processor core is executing what task and how the results are stored and passed on. In current systems, this management functionality is handled by dedicated software that is referred to as the operating system (OS). The current software-only approach to OS comes with a big penalty; it can take a lot of memory and can become a bottleneck in the system – increasingly so as more processors have to be managed. The problem is more critical in embedded products, such as cellphones and PDAs, which have limited memory and battery life.

Ignios: a different approach to multicore
To make full use of the facilities, flexibility and performance offered by multicore designs requires a new architectural approach. However, given the amount of legacy understanding in the chip and software industries, any solution must work with existing processor designs and software-development know-how. Solutions have to trade-off between power, performance, memory size and complexity.

Ignios’ first product, SystemWeaver, launched at Electronica 2004 in Munich, takes care of the trade-offs in a cost efficient and elegant manner.

SystemWeaver, utilising technology in two patents filed by Ignios, unifies all the various processing resources in a multicore chip design beneath a single software interface (API) that makes programming multicore chips simpler and produces more efficient results. This approach is independent of the underlying types of processor resource and will work with most of the existing processor cores on the market, such as ARM, MIPS, ARC and various other DSP and specialist IP.

SystemWeaver consists of an API and an IP core that the company expects to require 70K to 80K ‘gates’ of chip area (about 0.25mm2), which in today’s context of large multicore design, is quite small. The solution may also require the addition of around 2K gates for some types of specialist processing resource. The first version of SystemWeaver can handle up to 255 processors, which is appropriate for the market at this stage.

Customers and partners
The company will license the SystemWeaver API and IP core to companies developing multicore chips. These might be fabless semiconductor companies or IDMs. Many of the benefits of SystemWeaver-enabled chips are actually realised by the end-users of the chips. The company says that it has gained traction for SystemWeaver with a number of chip companies who appreciate the challenges that their end-customers are facing in trying to use multicore chips.

The company has worked with EDA companies and is starting to work with OS vendors interested in enhancing their software to take advantage of SystemWeaver-enabled chips. According to Rick Clucas, “Mentor Graphics has been very supportive in terms of support and flexibility of pricing, which is necessary for a start up in its early stages”. Rick has been critical of vendors which are inflexible with price demands, which can eat up a substantial amount of its initial S3, R1 funding. He says this is specially the case with head-hunters and some recruitment companies.

The Chilli perspective
Markets: Intel has already announced that ramping up the clock frequency doesn’t result in equivalent performance and will result in power dissipation problems. So the market is ready to deploy multicore designs and solutions. Ignios is well positioned to take advantage of multicore designs and increasing use of platform-based designs on pSoC (programmable SoC) and pASoC (programmable, application specific platforms on SoC) aimed at embedded systems such as network systems, graphics, digital consumer and storage applications.

Pricing model: The challenge for all platform based offerings – which consist of hardware, software and tools – is the legacy and the way hardware and software IP is sold. Hardware IP usually commands a license fee and some royalties in terms of the number of units produced. Software tools are sold in terms of number of developers and users working on a specific project. This creates a dilemma for the vendor as a switch to one or other business model creates a different pricing model.

Some vendors have overcome this by estimating the number of developers involved in the project at the outset and burying the tools price in the overall license fees package. However, experience gained by the Ignios management team in this sector will become very useful, especially now that free evaluation licenses are no longer popular amongst IP vendors. Ignios is focusing on the hardware IP model today, which is potentially the most lucrative but also a tougher sell due to the typical levels of license fee required.

Sales channels: Initially the company plans to sell direct to large semiconductor and systems vendors. After it has raised a Chilli R2 it will be in a good position to develop extensive reseller and partner networks with other IP companies, systems level design tools vendors and EDA vendors.

Competitors: Current offerings on the market which address similar problems are available from existing OS players such as OSE, Nucleus, Green Hills and Wind River. The problem with software-only RTOS (real time operating systems) solutions is that they take a lot of memory space and tend to consume a lot of clock cycles, which hogs the system. This is a big problem in embedded design where space and performance is limited by power considerations.

Ignios has been clever in its architecture design and commercial strategy, in not competing directly with the current approach. Instead of competing with the established players, it has developed a complementary solution that can be used with legacy approaches to both software (RTOS) and hardware (processors). The SystemWeaver API can be used either directly by software developers or can be buried beneath an existing RTOS. The hardware architecture also supports legacy multicore designs.

Potential competition can come from existing processor vendors, who want to remain in control of the overall design flows, and be selective in who it wants to partner with. However, the need to create fast, complex multicore designs that utilise a variety of different processing resources from different core and tools vendors positions Ignios in a neutral and open position.

Summary
Ignios has hit its main milestone, namely getting its first product ready. It has a well-experienced management team that has the relevant domain expertise in the field of multicore designs. It is engaging with prospective semiconductor customers and has also started entertaining the key systems level EDA and processor IP vendors who are key players in the multicore designs. Ignios is hitting the market window at the right time, with the recent heightened activity on multicore designs shown by announcements from major semiconductor vendors.

The next milestone for Ignios is to strike up some key pilot customers, where the initial product offering can be fine tuned. It is in a good position as the skill-sets and market for system-level, multicore design in Europe is three to four years ahead of other regions in the world.

Once Ignios has achieved it next key milestone, it will be in a good position to be considered as part of an overall solution, and hence likely to be target for acquisition by systems tools vendors or possibly a semiconductor company looking to restrict access to this technology for their own products only.


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© Chilli Publishing Ltd 2004

08NOV2004

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