Rather than start a company from scratch, venture investors spun out a team from Huntsville, Alabama-based wireless communications developer Time Domain to form Alereon.
Twenty-seven of Alereon’s 37 employees are from Time Domain. Investors moved the company to Austin, Texas, and recruited CEO Eric Broockman, who previously served with semiconductor company Legerity.
Alereon, which provides chipsets for wireless connectivity, last week closed on $31.5 million in its Series A round.
Austin Ventures led the deal with $8 million. Other investors include Centennial Ventures, Duchossois Technology Partners, eCentury Capital, Kinetic Ventures, Pharos Capital, which is an investor in Time Domain, and PTV Sciences.
Time Domain, which raised about $110 million from VCs since its 1987 founding, has retained an equity stake in Alereon.
Prior seed funding was rolled into the round. Alereon expects to close on another sum by the end of the first quarter for the final close of the round, but the total is not expected to exceed $35 million.
Austin Ventures Partner Basil Horangic serves as chairman of the board of directors. Other directors are Broockman and Dale LeFebvre, a managing director with Pharos.
The company plans to add another board member.
Alereon is interested in expanding its presence in Asia and Europe. Jeff Ross, an executive vice president with Alereon and a Time Domain veteran, says that the company has signed some strategic agreements.
And he says that investors are already making important introductions to potential customers and business partners in Asia. The company will likely have operations in Asia to be close to customers and strategic partners.