Peraso Technologies, a semiconductor manufacturer, announced today that it has raised an additional $42 million CAD in equity funding.

The round was led by two unnamed American wireless sector firms as strategic investors, as well as existing investor, Roadmap Capital. Peraso stated that this level of funding ranks as one of the top rounds for all semiconductor companies funded in 2018.

“We are very excited to support the growth phase of Peraso in fixed wireless, mmWave wireless links for 5G and WiGig-based consumer electronics.”

“This latest round of funding reaffirms our investors’ confidence in the progress that the company is making and the future for both Peraso and the quickly expanding market for mmWave technology-based products,” said Bill McLean, president and CEO of Peraso. “Raising this capital allows us to take our sales to the next level, especially as an increasing number of consumer electronic and wireless infrastructure manufacturers choose to incorporate multi-gigabit wireless connectivity into their products.”

The Toronto-based company manufactures fabless semiconductors, meaning Peraso designs hardware devices and semiconductor chips, and outsources the fabrication of the devices to a specialized factory. Peraso is currently producing integrated circuit solutions for the high-frequency and unregulated 60 gigahertz (GHz) band, known as WiGig. The solutions are meant to address WiFi opportunities in the fixed wireless access market, in addition to wireless networking and 4K wireless video sharing.

According to The Globe and Mail, Peraso generates millions in revenue each year, and expects demand to skyrocket with data usage on the rise. Peraso’s current competitors include Qualcomm and Intel.

Peraso’s technology originates from the creations of University of Toronto engineering professor Sorin Voinigescu. The company builds products that tackle two emergent trends in the market of wireless technology. It claims that its semiconductors are a counterweight to overcrowded wireless networks and hot spots, and it is one of three companies offering a new type of microchip anticipated to be the foundation for the newest generation of wireless networks. Peraso said the 60 GHz band offers wireless internet service providers more spectrum for competitive prices.

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Peraso has raised $112 million USD since the company’s founding in 2009. Past investors include U.S. semiconductor manufacturers Qorvo Inc. and Integrated Device Technologies, as well as Canadian VC firms Celtic House Venture Partners and iNovia Capital. In April 2016, the company raised a $20 million Series C round.

“Roadmap is very thrilled to see Peraso bringing new strategic investors to its shareholder base. It is a validation of the superior performance of Peraso’s solution,” said Imed Zine, technology partner at Roadmap Capital. “We are very excited to support the growth phase of Peraso in fixed wireless, mmWave wireless links for 5G and WiGig-based consumer electronics.”

The Globe and Mail spoke with Phil Solis, research director with market research firm IDC, who said Peraso “is likely a potential acquisition target.” McLean told the Globe that an acquisition by a foreign buyer is not only likely, but is also what current investors are hoping for.