Ozmo Devices, a provider of wireless personal area networks that use little power and are supposedly cheap to operate, has raised $10.8 million in a fourth round of venture funding.
The company's offerings are tailored to small wireless devices like keyboards, headsets and mice for computers, positioned as a substitute for pricier Bluetooth technology. It's also seemingly gotten its foot in the door in the cleantech sector, possibly to provide wireless communication systems for smart grid applications. The Cleantech Group listed it in its 2009 roundup of deals for this reason, but it's been quiet on this market potential so far.
Wireless connectivity is a rapidly growing business. More devices are coming with built-in communications features than ever before, including phones, game consoles, notebook and tablet computers, and even GPS systems for vehicles. Concurrently, there's a trend toward devices with longer battery lives that require less power (and therefore less money) to run. Ozmo appears to be riding both of these waves.
Ozmo's solution consists of two components: A driver built into the wireless device in question (most likely a computer or phone), and a chip that is embedded in whatever peripheral devices it needs to be able to talk to, like speakers and web cameras, among others. Its advantage over Bluetooth and wireless USB is that it reuses existing Wi-Fi hardware to accomplish the same ends.
Based in Palo Alto, Calif., the company has brought in about $40 million to date. New investor Atlantic Bridge Ventures led the most recent round of funding, joining existing backers Intel Capital, Granite Ventures and Tallwood Venture Capital. The company says it will use the money to jump start mass manufacturing.
Along with this new money, Ozmo has brought in a new CEO who is a known quantity in the semiconductor space, Bill McLean, who held the same post at GloNav (acquired by NXP for $110M in 2007). The company identified him as a good candidate to lead a major ramp up in production -- plus he chipped in some of his own money toward the $10.8 million.
One concern, despite all this promise, is Ozmo's burn rate. The company has plowed through its initial $30 million with relatively little to show for it. Bluetooth dominates the market for connected peripheral devices right now. So Ozmo will be going head to head with practically a household name.