The News

Newly Formed UPEK Raises $20 Million in a First Round Financing Led by Sofinnova Ventures and Sofinnova Partners

17/03/2004

New Silicon fingerprint biometrics company launches as a venture-backed spin-off of STMicroelectronics’ TouchChip business.

BERKELEY, Calif. – March 17, 2004 – UPEK, Inc., newly launched and the leading supplier of silicon-based fingerprint security solutions, today announced the closing of a $20 million first round financing (Series A) led by an international syndicate of investors including lead investors Sofinnova Ventures (San Francisco) and Sofinnova Partners (France), and Diamondhead Ventures (Menlo Park), Earlybird Venture Capital (Germany and US), EDBV Management (Singapore) and Green Dot Capital (Singapore).

UPEK has been launched through the transfer of the business, personnel and technology assets related to STMicroelectronics’ fingerprint biometrics business, formerly known as the TouchChip Business Unit, in a venture-backed spin-off transaction whereby STMicroelectronics remains the primary supplier of silicon and components to UPEK, and is a significant shareholder in the new company.

“UPEK is poised for success,” said Piero Martinotti, a UPEK board member and formerly the general manager of the STMicroelectronics’ group that housed the fingerprint business unit. “The technology and initial strategic relationships were developed with the sizable resources available through STMicroelectronics. Now that the products are mature, they can continue to evolve under UPEK’s entrepreneurial business model. STMicroelectronics is committed to the success of UPEK.”

“The team and I are excited to have the opportunity to establish UPEK as an independent company with the latitude to more effectively pursue the total solutions business model demanded by our customers and the marketplace,” commented UPEK President and CEO Alan Kramer, who directed STMicroelectronics’ fingerprint business unit from its inception in 1999. “We will ensure that the customers who have come to rely on the TouchChip products transferred to UPEK will receive uninterrupted availability of product and the benefit of enhanced customer support through UPEK’s singular focus and commitment at a corporate level.”

Jean Schmitt, Partner of Sofinnova Partners, pointed out, “UPEK launches with a leadership position established in a range of commercial and consumer security applications, including biometric notebook computers for data security and government PDAs for portable identification.” Roland Manger, Managing Partner of Earlybird Venture Capital, added, “UPEK's fingerprint security modules will drive the rapidly emerging markets of PC password replacement, cell phone security enabling m-commerce and fingerprint locks for easy-to-use physical access control.”

The TouchChip family of products transferred to UPEK have been shipping to the marketplace since 1999 and UPEK starts with an established worldwide customer base covering a range of commercial security applications. Further details can be found at www.upek.com.

The biometrics market was estimated by the International Biometric Group (IBG) to be $719 million in 2003 (including AFIS and services.) IBG projects the size of the market will grow to $1.2 billion in 2004 and $4.64 billion in 2008.

The 2004-2005 members of UPEK’s board of directors are Eric Buatois, Kramer and Martinotti, as well as David Lane of Diamondhead Ventures, Roland Manger of Earlybird Venture Capital, Alberto Sangiovanni-Vincentelli, PhD of UC Berkeley, and Jean Schmitt of Sofinnova Partners. Juzar Motiwalla, PhD of Green Dot Capital will join the board in 2005.

About UPEK
Headquartered in Berkeley, California, UPEK, Inc. is a privately-held biometric fingerprint solutions company launched as a venture-backed spin-off from STMicroelectronics in 2004. The silicon fingerprint modules offered by UPEK under the TouchChip brand have been shipping in volume since 1999 and have been integrated into a variety of commercial applications.  UPEK offers the full range of capabilities needed to deliver end-to-end solutions that make security convenient and easy to use, including silicon fingerprint sensors, biometric algorithms, companion processors, and application software.