Investors Display Optimism As Fundings Represent Largest Amount Since Q3 2001
SAN JOSE, Calif. (April 19, 2004) – The Fabless Semiconductor Association (FSA), the global voice for fabless and hybrid semiconductor companies and their foundry and supply-chain partners, announced today that 40 fabless companies raised $560.1 million in Q1 2004, an increase of 32% over the same period in 2003.
This growth represents the third straight quarter of double-digit growth for fabless fundings and the longest stage of continued growth since 2000. The FSA announced this information with the release of its Q1 2004 “Fabless Fundings” report.
The total number of fundings closed increased 14% year-over-year, growing from 35 deals in Q1 2003 to 40 in Q1 2004. In addition, the average amount raised by companies seeking their first round rose over previous years, growing to $11.9 million, the highest average amount raised in the first round since 2000, when the average first-round amount closed was $15.8 million.
The FSA’s research notes that venture capitalists are continuing to invest in later-stage companies, as nearly three-quarters of funding deals in Q1 2004 went to companies raising their second, third or fourth rounds of funding. Despite this fact, Q1 saw an increase over 2003 in the percent of companies raising first-round funding, with 20% of fundings in Q1 2004 going to early stage companies, compared to 17% in 2003.
“The venture capital community is certainly sending a strong message to the technology industry at large by increasing their investment in the semiconductor sector,” stated Jodi Shelton, co-founder and executive director of the FSA. “The number of deals and sheer quantity of closed fundings further represents investors’ confidence in the long-term growth of the semiconductor industry and, in particular, the fabless business model.”
About the Fabless Semiconductor Association:
The FSA is the global voice of fabless and hybrid semiconductor companies and their foundry and supply-chain partners. Incorporated in 1994, the Association (www.fsa.org) is focused on the perpetuation of the fabless business model throughout the worldwide semiconductor industry. The organization encourages the relationship between semiconductor companies and suppliers; facilitates business partnerships; creates awareness of the fabless/outsourced business model; disseminates industry data; and fosters standards and policies.
FSA members include fabless companies, IDMs, foundry providers, packaging/assembly houses, intellectual property providers, electronic design automation companies, OEMs, photomask companies, design software companies, investment bankers, venture capitalists and other companies. FSA members represent more than 21 countries spanning North America, Asia-Pacific, Europe and the Middle East.
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