Xynetix snares additionalfinancing to fund expansion

Mike Dickinson//July 24, 1998//

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Xynetix Design Systems Inc. has raised $4.2 million in equity financing to fund further expansion. It has attracted $7.6 million in venture capital since spring 1997.
The Fishers-based Xynetix, until last year known as Harris Electronic Design Automation, is the leading developer of electronic design automation software for advanced integrated circuit packaging–material that encapsulates silicon chips.
Four organizations joined the current round of financing. North Atlantic Capital Corp. led the round, with Fidelity Ventures, Harris Corp. and Zero Stage Capital Co. Inc. also participating.
“The valuation of Xynetix has doubled in the past year, reflecting the company’s successful introduction of breakthrough EDA technology,” said John Remondi, managing director of Fidelity Ventures.
The investment, he added, reflects Fidelity’s confidence in the company and its market opportunities.
Xynetix plans to use the funds to accelerate product development and expand its sales and marketing support.
The company added several key customers during the past quarter, including Lucent Technologies Inc. and Dell Computer Corp.
“We have found an impressive list of electronics-industry leaders have validated the Xynetix technology,” said David Coit, president of North Atlantic Capital, based in Portland, Me. The company invested in Xynetix for the first time this summer.
Thomas Beckley, president and CEO of Xynetix, said the investment will allow the company to take full advantage of market opportunities. He plans an initial public offering as early as 1999.
Xynetix develops EDA software for advanced IC packaging and complex printed circuit board design.
The company’s work force grew 43 percent last year, from 70 to 100 employees.
The privately held firm does not release sales or profit figures.

7/24/98