Posts Tagged ‘Tallwood venture Partners’

Here is an excellent article from the VC dispatch at Wall Street Journal.

“Though demand for mobile phones is at an all-time high, Sequoia Communications Inc., a developer of components for the devices, has found itself unable to raise additional venture capital and is closing its doors, according to an investor.

The San Diego company had raised about $64 million from nine venture firms over several rounds beginning in 2001, VentureWire records show.

Luis Arzubi, a general partner with Tallwood Venture Capital, which participated in three funding rounds for Sequoia, said the company felt the pinch from the world’s economic slowdown, competition from name-brand tech companies and the difficulty of keeping the company’s components in compliance with the rules and protocols of numerous overseas markets.

“The company was running behind its original schedule,” Arzubi said. “Venture capitalists are very cautious, and afraid of throwing good money after bad.”

The company developed a transceiver for mobile phones that worked well, he said, and had signed up customers. Sequoia was about a year away from breaking even when investors pulled the plug, he said.

Transceivers are one of many electronic components that enable wireless communication. They are capable of tuning in, modulating and broadcasting standard cell signals. Transceivers also exist in other electronics and are used to pick up and broadcast other types of signals.

Semiconductor giants such as Qualcomm Inc. and Infineon Technologies AG also build transceivers, and they have more resources to bring to bear on the process, Arzubi said. They also have a diversified line of products, which Sequoia did not.”

Read the fulla article here.

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