Company: Digital Optics
Description: Optical components
Location: Charlotte, N.C.
Amount of VC raised : $45 million
VC firms: J&W Seligman & Co., Carolinas Capital, Intel Capital, Intersouth Partners, Wakefield Group, Agilent Technologies, RF Micro Devices, Bank of America Securities, Chase H&Q
VC directors: N/A
Exit type: Trade Sale to Tessera Technologies Inc.
Exit valuation: $59.5 million
Absolute return: 32%
Memorable quote: “Intellectual property is at its greatest value when it helps create and maintain strong market positions,” said Digital Optics Corp. CEO Kevin Drehmer on the occassion of the company's 100th patent filing in 2002. “At DOC, our intellectual property is contributing value through licensing, partnering and protection within specific market niches.”
Memorable awards: Named the 120th fastest privately held company by Inc. magazine in 1999.
Quick take: Fourteen years after its establishment, Digital Optics has achieved an honorable exit. Founded by a college professor, the optical component maker built up an impressive portfolio of patents for components with a variety of applications. The venture and corporate backers are probably not as sanguine with the returns since they invested $45 million five years ago. However, considering the pain felt by the entire optical components industry since 2000, this exit should be considered a success.
For more on Digital Optics' sale, see:
Charlotte Business Journal
Tessera's press release
Tags: digital+optics, tessera, vc, venture capital
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