CUPERTINO, Calif. -- Magma Design Automation Inc. there said today that it has raised $31 million in mezzanine financing, bring to $54 million the amount of funding it has received since it was founded in 1997.
The new equity will be used to enlarge Magma's research, development, sales and customer support organizations and for international expansion to meet the demand for Magma's chip design and implementation software.
Funding comes from major equity funds, venture capitalists, strategically aligned corporations and from private investors. The investor list in the latest round includes Admirals LP, part of the Galleon Group; New Enterprise Associates; Alliance Venture Management; Raza Venture Fund;Redwood Fund; and major corporations including Cisco Systems, Intel and Hyundai.
Magma is trying to become the dominant supplier of software for high-performance IC design and implementation. Its Blast Fusion physical design system, released last year, offers a radical approach to solving the timing closure problem. Magma now hopes to combine logical and physical IC design steps together with a single system for register transfer level (RTL) to GDSII chip-layout implementation (see Jan. 24 story ).
"With radical growth expected for the Internet and semiconductor industries over the next several years, long-term investments in breakthrough enabling technologies such as Magma's are certain to yield high returns," said Raj Rajaratnam, general managing partner of the Galleon Group. "Magma has a great foundation for success; their CEO has an impressive track record and their technology addresses critical performance and time-to-market issues for IC development."
According to Atiq Raza, formerly the president and chief operating officer of Advanced Micro Devices Inc. and now running the Raza Venture Fund, "I was an EDA customer for many years in my previous career. I can attest to the fact that Magma's physical design system is one of the most innovative solutions to come out of the EDA industry since synthesis."
Magma's customer list currently includes 3Dlabs, AMD, Fujitsu Semiconductor Group, Sun Microsystems, Texas Instruments, and Real Chip.
"As one of the early investors in Magma, we've witnessed the explosive demand for their technology and the buzz they've created in the EDA industry," said Mark Perry, partner at New Enterprise Associates. "Our continued investment is a strong indication of our confidence in Magma's ability to meet its aggressive goal of becoming one of the top three EDA vendors by 2002."