Netronome, which makes networking chips, has raised $23 million in a fourth round of funding, bringing its total capital raised to more than $90 million. The oversubscribed round validates the company’s focus on highly customizable processors aimed at meeting the need for real-time information processing in communications and data networks. As broadband speeds get faster and cloud computing grows, the need for speedy processors that can route bits despite the tsunami of information grows.
Netronome’s chips sit inside appliances designed for virtualizing I/O in data centers (GigaOM Pro, sub req’d) and on the line cards inside the carrier networks helping route information in real time for deep packet inspection over fast broadband speeds. In 2009 the Linley Group, a semiconductor research firm, pegged the network processor market at $300 million and pointed out that “many large vendors have abandoned the market, leaving excellent opportunities for more focused vendors.”
Netronome competes with Wintegra, LSI (s lsi), EZChip (s exch) and others. With the new investment Netronome will scale technical support for its customer design wins and expand sales, marketing and manufacturing. The company expects to more than double its sales this year, according to its funding release. The round was led by new investor DFJ Esprit, and included previous investors Raptor Group, Tudor Ventures and Top Technology.