It’s official: Tier Logic will cease to be in business on Friday July 16, 2010. The company has been trying to close its second round of funding, but it became clear last week that no short-term funding from a new VC would come, despite some due diligence by two lead investors. Since Tier Logic’s existing investor decided to not pursue on its own, it had no choice but to close the doors.
Tier Logic had a unique value proposition: you could turn its FPGA into an ASIC in a predictable time and cost. It had a working silicon and a proven production tool, and achieved to do so with spending only $20M.
It is a pity to see that a company with such a good technology and such an attracting business proposition must shut down because of lack of interest from VCs. You have to wonder which strings you have to pull in the investment community to get the attention you deserve.
Although Tier Logic will likely attempt to sell its technology to a Xilinx or an Altera, it is also quite likely that whoever the buyer is will simply buy Tier Logic’s patents to bury them. Too bad.