A Chip for All Reasons
Rapport Inc. might just have the leadership to succeed in selling its “parallel computer on a chip” in the mobile devices market.
HQ: Redwood City, CA
Management: Andrew Singer is founder, chief executive officer, and chief technical officer. In 1982, he cofounded Think Technologies, a third-party developer of software tools for the Macintosh platform, and since then he’s held numerous management and entrepreneurial positions. He also worked at Interval Research, a now-defunct technology incubator funded by Microsoft cofounder Paul Allen. Frank Sinton recently joined Rapport as its president and chief operating officer. Before that, he was cofounder and CEO of Think Technologies and worked at numerous technology startups, including MediLife Software, Aspen Security, and Raman Medical. Rapport’s chairman of the board is Gordon Campbell, a semiconductor industry leader and founder of Techfarm, a technology incubator and investment firm.
Investors: In July, Rapport raised a $7 million Series A financing from Techfarm Ventures.
Business Model: Rapport has developed a single chip, Kilocore, that consolidates numerous tasks usually performed by multiple dedicated chips, such as WiFi and MPEG encoding. The chip contains 256 independent processing elements (or cores), and is clocked at up to 125MHz, capable of performing 32 billion operations per second. The company is targeting the market for mobile devices, where several chips are typically required to perform wireless and multimedia functions – with little room. Rapport claims that its chip is faster than conventional microprocessors; for example, it runs a digital security decryption algorithm four times faster than a 1.8GHz Pentium. The company also says its offering can give mobile devices up to four times the battery life. Currently, Rapport has a partnership with Pulver Innovations to deliver chips for the VoIP market.
Competitors: IBM, Sony, Toshiba, ARM, Motorola, Philips, Qualcomm, and Texas Instruments
Dirt: The concept of reducing many functions onto a single chip is a Holy Grail in the semiconductor industry. It’s impressive that Rapport is pursuing such a worthy (and highly lucrative) quest. Nonetheless (as shown above) the competition is stiff. What’s more, given the steep capital costs of launching a chip venture, Rapport will face tough odds financially as well. Chairman and lead investor Gordon Campbell is a savvy veteran of the chip industry, however, and should bring unmatched experience to launching this semiconductor startup.
The rise of WiMAX and Wireless Mesh – and other alarm:clock news from the land of private venture funding.
WiFi (wireless fidelity) has been a tremendous success – arguably one of the biggest technology trends in recent years. Yet it is also severely limited: its range is poor and it has developed a reputation among consumers for being laborious to set up, with signals sometimes not covering a household, as well as compromised security.
Enter two new technologies: WiMAX (“worldwide interoperability for microwave access”) and wireless mesh networking. They could augment WiFi – and make the wireless Internet pervasive. Both the WiMAX and wireless mesh equipment markets enjoyed solid inaugural years in 2004; but the best is yet to come, according to a report by Infonetics Research. It looks like both emerging technologies may be taking off, as WiMAX clients come to market in 2007-08 and more metropolitan areas launch wireless mesh projects.
WiMAX is a technical standard that’s both faster and has a longer range than WiFi. Its coverage, for instance, is measured in square miles, while WiFi is measured in square feet. Yet WiMAX does not necessarily conflict with WiFi, but is designed to interoperate with it and may also complement it. Currently, WiMAX products are aimed at network service providers and businesses, rather than consumers. However, eventually the technology could enable millions of people to access the Internet more easily and cheaply than WiFi.
So far, only about $16.4 million in WiMAX equipment has been sold, primarily to businesses for intra-office and campus uses. Interoperability testing just began in July 2005 by an official nonprofit standards organization, the WiMAX Forum, as well as by vendors. Infonetics estimates that around $124.5 million in WiMAX equipment will be sold by the end of this year.
These “convergence” technologies promise many strategic opportunities, as they bring down the cost of connectivity. WiMAX can be a last-mile solution for WiFi, for instance, and potentially used in third-generation (3G) cell-phone networks. It may also become a viable DSL/cable broadband replacement technology for consumers, and even offer nomadic or portable wireless Internet access for both consumers and enterprises. Finally, it could carry voice-over-Internet-protocol (VoIP) services.
Meanwhile, wireless mesh networking, in which each node is connected to several others in a robust, redundant LAN, is already being used by some municipalities for WiFi hot zones. According to the Infonetics report, it’s also ramping up quickly. The entire city of Philadelphia, for example, is looking to install a wireless mesh network.
Mesh equipment sales were only about $8.8 million in 2004, but are projected to rise to more than $110 million this year. Wireless mesh does face significant competition, though, in the cable and telephone companies, which see it as a threat to their revenues. As reported in recent headlines, these first- and second-generation providers have already lobbied successfully for legislation barring wireless mesh zones in some metro areas.
But investors aren’t daunted, and have recently bankrolled a number of WiMAX chip makers. PicoChip of Bath, England raised $20.5 million in June 2005; Paris-based Sequans, $9 million in February 2004; and Carlsbad, CA-based Cygnus, $20 million in July 2004. In April 2005, Intel and Fujitsu both unveiled radio chips for use in WiMAX equipment, and announced a large number of customers.
In the field of wireless mesh, La Jolla, CA-based Kiyon Inc. raised $10 million; Los Gatos, CA-based Firetide Networks, $15.6 million; and Sunnyvale, CA-based Tropos Networks, $13.5 million.
Become an MIT Technology Review Insider for in-depth analysis and unparalleled perspective.Subscribe today