About the transaction
Silverpeak acted as exclusive financial adviser to EFFECT Photonics B.V. on its Series B funding round. Innovation Industries led the round. EFFECT Photonics is a leading developer of high-performance DWDM optical components. Its technology is built on a proprietary optical System-on-Chip architecture.
Strategic context
The funding accelerates the ramp of EFFECT’s tunable SFP production line. It also supports the development of future technologies. EFFECT addresses a clear market need: low-cost, wavelength-tunable optical transceivers with industrial temperature specification. These transceivers are critical for next-generation 5G mobile infrastructure, as well as broader networking applications. As a result, the global market for optical transceivers is forecast to grow from $6bn in 2017 to $12bn by 2023 (Lightcounting, 2018).
How Silverpeak added value
Silverpeak supported EFFECT Photonics throughout the entire process. The team led the preparation phase, then identified and contacted a global network of specialist investors. Subsequently, Silverpeak negotiated the deal terms and managed the transaction through to completion.
What our clients said
James Regan, CEO of EFFECT Photonics, said: “Silverpeak’s deep understanding of optical technologies proved invaluable. Their relationships across the global investor landscape were equally important. They showed total dedication throughout the process. Their expertise and advice were instrumental in closing this round.”
Pietro Strada, Managing Partner at Silverpeak, added: “We are proud to have worked with James and the EFFECT Photonics team at this pivotal stage. EFFECT stands at the global forefront of ultra-fast optical integrated circuits. Furthermore, the company is well placed to capitalise on the significant opportunities ahead in its sector.”
Nard Sintenie, General Partner at Innovation Industries, said: “We are delighted to have invested in EFFECT Photonics. Moreover, we believe the company and the process both benefitted from Silverpeak’s involvement. We thoroughly enjoyed working with their team.”