InnoLight Technology Corp., a Chinese technology company specializing in high-speed optical transceivers in the computer services industry, has received a substantial investment from Google Capital, the Wall street Journal reports.
Google Capital is a growth-stage branch of the search engine conglomerate Google and had until only recently focussed on start-ups based in the US and those which are part of existing portfolio companies. With the recent initial public offering of Alibaba in the US at $25 billion, Google Capital is now expanding its reach to look at other start-ups from China.
Gene Frantz, a general partner at Google Capital, stated in a press release that the company's interest in InnoLight lies in the uniqueness of the technology and how it is perfectly suited to "next-generation data center environments." The technology itself works by converting the electrical signals created by a server into optical signals, which are then transported along fiber-optic cables to another server, where they are then converted back into electrical signals.
Some of the benefits InnoLight can expect from the relationship with Google Capital include a deeper insight "into core computer center technology", Frantz claims, as the US market holds far more possibilities for the start-up than joining with another Chinese company, where the market is still considered to "lag behind" that of the US.
Customers of InnoLight include cloud operators and communications equipment manufacturers in the US and in China; the new investment will hopefully increase the production capacity of the company with the purchasing of new equipment, hiring new employees and investing in more research & development (R&D) practices.