One of Europe’s largest wireless venture financings of the year, Swedish digital pen and paper maker, Anoto has secured second round funding of SEK600 million. Mexican group PenMex has committed SEK400 million, Swedish high tech company C Technologies put in SEK150 million and a major Swedish insurance company committed the remaining SEK50 million.
Anoto was spun out of Swedish high tech company C Technologies in 1999 and received $15 million funding from Stockholm-based wireless giant Ericsson. The company currently has around 180 employees in offices worldwide in Lund, Stockholm, Boston, Tokyo and Hong Kong. Ericsson still holds a minority stake in the company and is also represented on the board.
Prior to the funding, C Technologies held a 70 per cent stake in Anoto and Ericsson had a 30 per cent share. Following the new share issue, C Technologies now owns 60 per cent, Ericsson holds a 23 per cent share, PenMex has 15 per cent and the remainder is held by a Swedish insurance company.
Christer Fhraeus, president of Anoto, said: “The management estimates that these investments fully meet the capital requirements to finance Anoto until a positive cash flow is achieved, which is expected to occur in 2003. PenMex provides the necessary capital contribution to ensure this as well as a speedy and effective entry to a new important and strategic market.”
PenMex represents owners and industrial partners with stakes in Mexican mobile phone operators and telecom distributors. Anoto has already signed an agreement with PenMex regarding implementation of the Anoto concept in the Latin American market.