Atlas Venture, Alta Partners and Startupfactory have provided $12 million in second round funding for Stockholm-based Xelerated, which will used to help bring the company’s trademarked Xelerator to market.
The financing was led by Atlas Venture. Together with Alta, Xelerated believes this backing will help the company break into the US market. Statupfactory was an original investor in Xelerated.
The Swedish company focuses on high-speed network processors, delivering wire-speed performance in the network processor market. According to findings by Semico Research Corp, this market is expected to be worth $3.3 billion in 2005. Just one year old, Xelerated plans to launch its products in early 2002.
Commenting on the deal, Kahled Nasr, general partner at Alta Partners, said: “The only companies that receive funding in today’s market are those that can prove there is an existing need for their products and most significantly a clear customer interest.”