Is Tier Logic doomed ? :-/

[whygee]

"another one bytes the dust"...

According to Processor Watch - July 22, 2010
(sorry, I have no URL, it was sent to me by email)

================================================
Tears for Tier Logic
By Tom R. Halfhill, Senior Editor, MPR (7/19/2010)

FPGA startup Tier Logic looks doomed after failing to raise
enough money to move its first chips into production.
A last-ditch attempt to save the privately held company
fell through last week, said Paul Hollingworth,
vice president for marketing and sales.

Tier Logic, founded in Silicon Valley in March 2002,
has spent about $20 million from its first-round investors
and needs another $20 million to $30 million to bring its
chips to market and reach breakeven, he said. Matrix Partners,
the sole remaining investor, extended a bridge loan to keep
Tier Logic alive for eight months during the search for
additional funding, but that money is nearly gone, and
the quest was unsuccessful. Another first-round investor,
Walden International, pulled out last year.

Hollingworth said the situation is frustrating, because Tier
Logic has operational samples of its first programmable-logic
chips and has already taken orders from early customers. The
company had planned to begin production by the end of this quarter.
================================================

Now, $20 to develop silicon over almost 8 years, that sounds
quite reasonable. So what did go wrong ? And what will happen now ?

I think that now, the worse that could happen is that X & A buy
all the patent portfolio and reinfoce their dominance in the market...

yg
--
http://ygdes.com / http://yasep.org

 

[General Schvantzkoph]

On Sat, 24 Jul 2010 11:20:22 +0200, whygee wrote:

"another one bytes the dust"...

According to Processor Watch - July 22, 2010 (sorry, I have no URL, it
was sent to me by email)

================================================ Tears for Tier Logic
By Tom R. Halfhill, Senior Editor, MPR (7/19/2010)

FPGA startup Tier Logic looks doomed after failing to raise
enough money to move its first chips into production. A last-ditch
attempt to save the privately held company fell through last week,
said Paul Hollingworth, vice president for marketing and sales.

Tier Logic, founded in Silicon Valley in March 2002,
has spent about $20 million from its first-round investors and needs
another $20 million to $30 million to bring its chips to market and
reach breakeven, he said. Matrix Partners, the sole remaining
investor, extended a bridge loan to keep Tier Logic alive for eight
months during the search for additional funding, but that money is
nearly gone, and the quest was unsuccessful. Another first-round
investor, Walden International, pulled out last year.

Hollingworth said the situation is frustrating, because Tier
Logic has operational samples of its first programmable-logic chips
and has already taken orders from early customers. The company had
planned to begin production by the end of this quarter.
================================================

Now, $20 to develop silicon over almost 8 years, that sounds quite
reasonable. So what did go wrong ? And what will happen now ?

I think that now, the worse that could happen is that X & A buy all the
patent portfolio and reinfoce their dominance in the market...

yg

There is a much bigger problem, there is no VC money anymore especially
for hardware and chip companies and there is no IPO market which is why
there is no VC money.