Tuesday, June 19, 2001
Waterloo video compression developer receives seed financing from Tech Capital Partners
First venture-backed company to be spun out of PixStream/Cisco
WATERLOO, ON, June 19, 2001 -- Tech Capital Partners, the only venture capital firm based in the high-tech centre of Waterloo, Ontario, has provided seed financing to Waterloo's VideoLocus Inc., a developer of next-generation video compression and processing technologies formed by four former employees of PixStream/Cisco.
The financing is the first for Tech Capital Partners' $30-million Waterloo Tech Capital fund, launched earlier this year.
"We're excited to be backing the first company spun out of PixStream," said Tim Jackson of Tech Capital Partners. "This is exactly the kind of opportunity we had in mind when we created Waterloo Tech Capital. VideoLocus has a talented development team with an impressive concept and we'll provide business expertise and help build a company while they focus on establishing their technology."
VideoLocus is headed by president Mate Prgin, a University of Waterloo graduate who joined PixStream in 1998. He is joined by chief technology officer Lowell Winger, and co-vice-presidents of research and development Guy Cote and Michael Gallant, all of whom earned PhDs in electrical and computer engineering before forming PixStream's advanced engineering team.
Under the terms of the financing, VideoLocus will immediately receive $600,000 with additional funds provisionally reserved for future investment. Funding will be provided through both Waterloo Tech Capital and Waterloo Ventures, the two funds managed by the partners of Tech Capital Partners.
The money will be used to fund development of the video compression technology, while the VideoLocus team works with Tech Capital Partners to establish a full business plan and development schedule.
VideoLocus has moved into offices in the growing high-tech cluster on Randall Drive in Waterloo.
About Tech Capital Partners Inc.