Xelerated raises $17 million for high-end NPU thrust

LONDON — Xelerated Inc. (Santa Clara, Calif.), a developer of network processors with origins in Sweden, has closed a $17 million Series C funding round with new investors Accel Partners and Amadeus Capital Partners.

Xelerated's existing investors Atlas Venture and Alta Partners also participated in the round. The money would be used to build out sales and support globally as well as to accelerate the development of next generation products. The company closed a $10 million funding round in Oct. 5, 2004.

"With the backing of such solid investors and more than 15 customer designs hitting volume production this and next year, I am confident in our continued success. We now have a fully funded business plan taking us to profitability in 2006," said Johan Boerje, Xelerated's chief executive officer, in a statement.

"Xelerated's tier-one customer engagements in the high-volume, high-growth metropolitan Ethernet market convinced us that Xelerated will emerge as the number one provider of merchant silicon for this segment," said Joe Golden of Accel Partners.

Xelerated's next generation chip, the X11, is specifically designed for Ethernet equipment. The chip has taped-out and first samples will be shipped to customers in July, the company said.