Crescendo Ventures' New Research Report Highlights Opportunities in Optical Components and Subsystems Markets

Apr 03, 2001, 01:00 ET from Crescendo Ventures

    PALO ALTO, Calif., April 3 /PRNewswire/ -- Despite the recent sell-off in
 optical networking stocks, the optical components and subsystems sectors are
 well positioned to provide handsome returns for high-growth investors during
 the next 10 years. The conclusions, contained in a new report, "Optical
 Components and Subsystems," were published today by Crescendo Ventures, a
 global early-stage investment firm specializing in communications and Internet
 infrastructure.
     In his 44-page report, Crescendo principal Jeffrey Yu reviews the current
 status of the industry, evaluates the major players, business and technology
 drivers, and discusses the pitfalls and opportunities available in a market
 that will grow to $24 billion by 2004, according to some estimates.
     Two of the report's key findings are that:
 
     -- The transition from 10 Gbps to 40 Gbps systems and higher, requires
        very substantial improvements and evolutions in component technologies,
        materials and manufacturing processes such as the development, for
        example, of a cost-effective PMD compensator and InP (Indium Phosphide)
        based high-speed electronics.
     -- To drive the adoption of optical technology beyond long-haul networks,
        the industry needs to change its emphasis from focusing on performance
        to optimizing or reducing cost. This necessitates new materials and
        processes that will produce integrated components.
 
     "If portfolio companies are successful addressing the technical challenges
 facing the industry, these two sectors will certainly be among the most
 rewarding areas for venture capital investment during the coming decade," said
 report author Jeffrey Yu, principal, Crescendo Ventures. "The incredible pace
 of change means that service and system providers are not only willing to
 adopt new technology, but demanding it. In addition, should the cost of
 components decrease sufficiently, there is no reason why carriers will not be
 able to deliver fiber pipes to the end user."
     "Optical Components and Subsystems" is the first in a series of reports
 that Crescendo Ventures plans to release during 2001. The report series will
 provide Crescendo's portfolio companies with valuable market research,
 awareness of technical and business opportunities and help guide the firm's
 investment strategy. As capital increasingly becomes a commodity, Crescendo is
 one of the few venture capital firms that offers entrepreneurs value-added
 programs to accelerate the development and success of their young companies.
 Among these are business development experts, human capital resources and the
 Afterburner program that includes service providers in executive search,
 software development, marketing and public relations.
     "Effective venture capital investing has evolved far beyond just
 distributing money to portfolio companies, and entrepreneurs are now actively
 seeking partners who can help them flourish and compete," said David Spreng,
 Crescendo Ventures founder and managing general partner. "This report series
 effectively demonstrates the depth of knowledge and expertise that we have
 developed internally to identify technologies and opportunities that can
 produce the same level of success that we have enjoyed with other optical
 companies such as Ciena, Algety/Corvis, CoreOptics, Novalux, Calmar Optcom,
 DigiLens, Symmorphix, Trellis Photonics, Tropic Networks, Zolo Technologies
 and Oplink."
 
     Obtaining the Report
     Requests for copies of the complete report (either hard copy or PDF) can
 be made by visiting www.crescendoventures.com/researchreports/ and completing
 the online form.
 
     About Crescendo Ventures
     Crescendo Ventures is a global venture capital firm that accelerates the
 growth of companies by providing seed and early-stage funding in
 communications and Internet infrastructure. A new breed of venture capital
 firm, Crescendo Ventures collaborates with and supports entrepreneurs, using
 its industry expertise and personal approach to nurture promising ideas and
 companies to their full potential. Founded in 1993, Crescendo Ventures manages
 more than $1 billion from its headquarters in Palo Alto, California and
 offices in Minneapolis and London.
     Additional information is available at www.crescendoventures.com. Media
 and analyst inquiries may be directed to Nigel Ravenhill, Bravo! Marketing,
 415-777-0800 x134, or nigel@bravomarketing.com. Company contact:  Victoria
 Lewis, 650-566-6816 x3006, or vlewis@crescendoventures.com.
 
 

SOURCE Crescendo Ventures
    PALO ALTO, Calif., April 3 /PRNewswire/ -- Despite the recent sell-off in
 optical networking stocks, the optical components and subsystems sectors are
 well positioned to provide handsome returns for high-growth investors during
 the next 10 years. The conclusions, contained in a new report, "Optical
 Components and Subsystems," were published today by Crescendo Ventures, a
 global early-stage investment firm specializing in communications and Internet
 infrastructure.
     In his 44-page report, Crescendo principal Jeffrey Yu reviews the current
 status of the industry, evaluates the major players, business and technology
 drivers, and discusses the pitfalls and opportunities available in a market
 that will grow to $24 billion by 2004, according to some estimates.
     Two of the report's key findings are that:
 
     -- The transition from 10 Gbps to 40 Gbps systems and higher, requires
        very substantial improvements and evolutions in component technologies,
        materials and manufacturing processes such as the development, for
        example, of a cost-effective PMD compensator and InP (Indium Phosphide)
        based high-speed electronics.
     -- To drive the adoption of optical technology beyond long-haul networks,
        the industry needs to change its emphasis from focusing on performance
        to optimizing or reducing cost. This necessitates new materials and
        processes that will produce integrated components.
 
     "If portfolio companies are successful addressing the technical challenges
 facing the industry, these two sectors will certainly be among the most
 rewarding areas for venture capital investment during the coming decade," said
 report author Jeffrey Yu, principal, Crescendo Ventures. "The incredible pace
 of change means that service and system providers are not only willing to
 adopt new technology, but demanding it. In addition, should the cost of
 components decrease sufficiently, there is no reason why carriers will not be
 able to deliver fiber pipes to the end user."
     "Optical Components and Subsystems" is the first in a series of reports
 that Crescendo Ventures plans to release during 2001. The report series will
 provide Crescendo's portfolio companies with valuable market research,
 awareness of technical and business opportunities and help guide the firm's
 investment strategy. As capital increasingly becomes a commodity, Crescendo is
 one of the few venture capital firms that offers entrepreneurs value-added
 programs to accelerate the development and success of their young companies.
 Among these are business development experts, human capital resources and the
 Afterburner program that includes service providers in executive search,
 software development, marketing and public relations.
     "Effective venture capital investing has evolved far beyond just
 distributing money to portfolio companies, and entrepreneurs are now actively
 seeking partners who can help them flourish and compete," said David Spreng,
 Crescendo Ventures founder and managing general partner. "This report series
 effectively demonstrates the depth of knowledge and expertise that we have
 developed internally to identify technologies and opportunities that can
 produce the same level of success that we have enjoyed with other optical
 companies such as Ciena, Algety/Corvis, CoreOptics, Novalux, Calmar Optcom,
 DigiLens, Symmorphix, Trellis Photonics, Tropic Networks, Zolo Technologies
 and Oplink."
 
     Obtaining the Report
     Requests for copies of the complete report (either hard copy or PDF) can
 be made by visiting www.crescendoventures.com/researchreports/ and completing
 the online form.
 
     About Crescendo Ventures
     Crescendo Ventures is a global venture capital firm that accelerates the
 growth of companies by providing seed and early-stage funding in
 communications and Internet infrastructure. A new breed of venture capital
 firm, Crescendo Ventures collaborates with and supports entrepreneurs, using
 its industry expertise and personal approach to nurture promising ideas and
 companies to their full potential. Founded in 1993, Crescendo Ventures manages
 more than $1 billion from its headquarters in Palo Alto, California and
 offices in Minneapolis and London.
     Additional information is available at www.crescendoventures.com. Media
 and analyst inquiries may be directed to Nigel Ravenhill, Bravo! Marketing,
 415-777-0800 x134, or nigel@bravomarketing.com. Company contact:  Victoria
 Lewis, 650-566-6816 x3006, or vlewis@crescendoventures.com.
 
 SOURCE  Crescendo Ventures