June 28, 2000
Woodside Fund Investment HotRail
Acquired by Conexant
Fund is Three-time Investor in Innovative Internet Switching and
Interconnect Technology Company, HotRail
Woodside, CA -- Venture capital firm Woodside Fund gets
the checkered flag as one of its star portfolio companies, HotRail
exits the portfolio through acquisition by Conexant. Woodside Fund
was the first active investor to partner with the company after
its founding in 1995, and has continued to play a critical role
in its funding, development and strategic partnerships.
HotRail, Inc. is an Internet infrastructure IC company that develops
highly scalable switch fabrics with integrated, multi-gigabit CMOS
interconnects that enhance the development of fast, sophisticated
network switching systems. HotRail's proven technology is designed
to significantly increase the performance of next generation networking
systems by eliminating data-flow bottlenecks. The acquisition of
HotRail will enable Conexant to deliver complete system solutions
for next-generation Internet infrastructure equipment, including
multi-terabit routers, asynchronous transfer mode (ATM)/Internet
protocol (IP) switches, gigabit Ethernet switches, and optical networking
equipment. Conexant will exchange 7.8 million shares, worth approximately
$394 million for all the shares of HotRail.
Beginning in 1995, Woodside Fund has been an important partner
to HotRail, Inc. " Woodside Fund has brought invaluable business
and technical expertise to our board," said HotRail's President
and CEO Rick Shriner. He added, "Dr. Robert Larson and the
Woodside Fund team have been extremely supportive of our efforts
to develop our company. "Dr. Larson is a Managing Director
of Woodside Fund and an advisor and board member of HotRail since
1995. "Having been intimately involved with HotRail since the
beginning, I am very pleased and proud of HotRail and their acquisition.
Working closely with the HotRail team has been an immensely rewarding
experience," says Dr. Larson.
For the first round of financing, Woodside Fund brought in the
ideal co-lead -- Gordon Campbell of TechFund Capital. Mr. Campbell
had originated the concept of the fabless semiconductor company
while CEO of Chips 'N Technologies. Woodside Fund and Techfund led
the $7.5 million first round. Woodside Fund then participated in
the second round, investing funds from Woodside Fund IV, as well
as in the third and final round of funding.
About Woodside Fund
Founded in 1983, Woodside Fund has one of the longest and
strongest track records of success in early stage venture capital
investing. All Woodside Funds have performed in the upper quartile
of the industry for venture capital partnerships formed in their
respective years. Woodside Fundís latest partnership, Woodside Fund
IV, which had its final close in April, invests between $5 and $10
million in early stage ventures in Internet and electronic commerce,
computer software, telecommunications, and networking. The
Fund serves as the lead or co-lead investor in most of its portfolio companies.
About HotRail, Inc.
HotRail, Inc., a venture-backed startup by Woodside Fund, Techfund
Capital, Selby Venture Partners, Chase Venture Capital, and others
is an Internet infrastructure IC company developing advanced, integrated
CMOS technologies for high-speed switching, interconnect, and scalable
processing for Internet systems. The company's multi-Gigabit interconnect
cores and integrated switch fabric technologies eliminate data flow
bottlenecks for greatly increased performance in networking and
computing applications, while providing for cost effective, reliable
and highly scalable systems.