VirtualLogix closes $16M funding from Intel, others

By Colleen Taylor, Contributing Editor -- Electronic News, 7/11/2007

Add VirtualLogix Inc. to the growing number of virtualization software companies racking up funds from heavy-hitters in the technology and venture capital realms.

The Sunnyvale, Calif.-based real-time virtualization software developer today announced that it has secured $16 million in series B financing. 

The funding includes participation from new investors, Esprit Capital Partners, who led the round, and chip giant Intel Corp.'s venture capital arm, Intel Capital. Current investors, Atlas Venture and Index Ventures also contributed to the Series B funding.

VirtualLogix said that the funding will be used primarily to accelerate the company's global growth strategy and develop its next generation of  real-time virtualization software solutions.

In a statement released today, VirtualLogix said it "works closely" with semiconductor companies including ARM plc, Intel, NXP and Texas Instruments Inc. to bring its solutions to device manufacturers. The company has recently expanded its presence in Asia with an office in Tokyo.

As part of the investment, Tom Bradley, partner at Esprit Capital Partners, will join the board of VirtualLogix and John Mascarenas, from Intel Capital, will join the board as an observer. VirtualLogix has raised a total of $28 million to date, the company said.

The investment is just the latest evidence of virtualization's growing importance in the chip realm. Earlier this week, Intel Capital announced plans to invest $218.5 million in Palo Alto-based virtualization software maker VMware Inc.'s Class A common stock.