Optical component start-up Lumera completed a $24 million round of funding
Wednesday led by Cisco Systems, the latest such company to attract an
investment from the networking giant.
Other investors include former Netscape Communications Chief Executive Jim
Barksdale's investment firm The Barksdale Group, Acorn Ventures, WRF
Capital, some current and former executives of Qualcomm, XO Communications,
Teledesic and Microvision. Several individual "angel" investors also
contributed.
For Cisco, the investment is just the latest by the communications equipment
powerhouse in an optical parts maker. Cisco took a stake in Gemfire earlier this month
and has made several other optical investments recently.
For its part, Lumera plans to use the
money to fund development of its first prototype products. "The investment
means we can stay on track to achieve commercialization in 2002," Lumera President Rick Rutkowski said.
The company believes its proprietary polymer material--essentially
plastic--is the key to building faster fiber-optic networks. The start-up
company is aiming to be the first to commercialize the use of polymers in
optical communications gear, though other companies including Pacific Wave
Industries and Ipitek are working with similar polymer
compounds.
Lumera is developing optical components, which it hopes to sell to
networking equipment makers. The components use light-sensitive molecules
that are embedded in plastic polymers to shuttle data traffic at the blazing
speed of 100 gigabits per second (Gbps). Most next-generation optical
systems are expected to carry traffic at 40Gbps.
The technology, in addition to being something of a novelty, in theory can
route data at much faster rates than existing technologies, proponents say.
In addition, lower power consumption by the polymer-based products can
reduce costs and the heat generated by some of today's high-end
communications gear, according to the technology's backers. As a result, the
company believes it can integrate many optical subsystems into a single
device.
"Why are they chasing these improvements in components? We're just
scratching the surface of the types of applications we're going to use,"
said Robert Rosenberg, president at Insight Research, a communications
industry research firm. "Anything that reduces size and power
consumption...is extremely important."
How it works
Fiber-optic networks send voice and Internet traffic as pulses of
multicolored, though undetectable, light over fishing line-like glass
strands. Recent advances in optical technology have led to an explosion of
new communications carrier networks with immense bandwidth, or capacity. But
as the Internet grows so does demand for bandwidth--and thus optical
research and development has increased.
At the heart of the Lumera technology are chromophores, light-sensitive
organic molecules.
These chromophores, which react when electrically stimulated, are blended
into a chemically synthesized plastic. The plastic is adhered to a
semiconductor chip, which, when electrically charged, aligns the
chromophores giving them the ability to block light or let it pass.
The technology is capable of routing or switching fiber-optic signals,
and proponents believe the plastic materials can do so faster, and while
consuming less power, than with current optical switching mechanisms. The
technology also is faster at converting data from electrical to optical
signals.
Larry Dalton, a professor at the University of Washington, conducted much of
the research. Now Lumera intends to develop optical modulator components
based on his findings.
The company, a subsidiary of Microvision,
which makes imaging products and retinal scanners, is building prototypes of
its first modulator. Lumera's modulator components are expected to be
available for testing later this year and commercially available by mid-year
2002, according to Lumera executives.
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