Montréal-based fabless semiconductor company Spark Microsystems has closed another $17 million CAD in Series B follow-on financing.
“We chose to extend our Series B with existing investors because they already have deep conviction in our technology.”
Spark, which specializes in next-generation short-range wireless communications, will use the funding to continue commercializing its patented, low-energy ultra-wideband (LE-UWB) tech. Spark’s LE-UWB transceivers provide high-speed, low-latency, and energy-efficient data transfer. The firm claims its tech can facilitate short-range wireless communications faster, using less power than alternatives like Bluetooth and Wi-Fi.
Its latest equity, all-primary round, which Spark announced on Monday, was co-led by Montréal’s Idealist Capital and Real Ventures, with participation from fellow existing investors Cycle Capital, ND Capital, and Export Development Canada. This financing closed in February and came at the same terms and undisclosed valuation as Spark’s initial, $34-million CAD Series B from March 2023. It brings Spark’s total funding to more than $70 million CAD.
“We chose to extend our Series B with existing investors because they already have deep conviction in our technology, roadmap, and execution,” Spark CEO Fares Mubarak told BetaKit over email. “That allowed us to move quickly on favourable terms without the distraction of a full Series C process. It also reflects strong insider confidence in the company’s trajectory while giving us the capital needed to hit the next major milestones before bringing in new investors.”
With AI workloads now pushing Bluetooth and Wi-Fi beyond their limits, Spark sees an opportunity to power a variety of cable-free applications across everyday electronics, from augmented and virtual reality headsets to sensors, autonomous robots, and next-gen IoT systems.
RELATED: Spark Microsystems raises $34 million to meet chip demand amid supply crunch
Mubarak argued that the wireless connectivity requirements of emerging internet-of-things and physical AI applications “are not being met by prevalent technologies” like Wi-Fi and Bluetooth that need robust wireless connectivity, ultra-low latency, ultra-low power, and high application data throughput. “This is where Spark’s [LE-UWB tech] comes into [the] picture.”
The CEO said Spark intends to use these funds to accelerate the commercialization of its existing products and launch new ones. To support these plans, the 85-person company intends to expand its sales, marketing, operations, and engineering teams.
Spark’s new chief commercial officer, Dhiraj Sogani, said in a statement that as Spark expands its commercial presence, it is seeing “soaring” demand across wearables, gaming peripherals, industrial automation, smart buildings, medical devices, and more.
“This funding equips us to scale customer engagements, strengthen channel initiatives and lead deployments in markets where performance, power efficiency, and reliability are critical,” he said.
Idealist Capital co-managing partner Steeve Robitaille thinks Spark’s tech could have “far reaching” implications for the wireless ecosystem by unlocking new applications across “multiple end markets spanning industrial and consumer domains.”