Israeli tech startup DustPhotonics raises $25M in Series B funding led by Intel Capital to develop pluggable optical modules for data centers

DustPhotonics, an Israeli tech startup that develops and manufactures pluggable optical modules and solutions for data center, enterprise and HPC applications, has secured $25 million Series B investment to fund its roadmap and expand its operations and global market presence. The round, which was  led by Intel Capital and joined by WRVI Capital, also includes a continued investment from veteran entrepreneur, Avigdor Willenz. Optical modules are hot-pluggable optical transceiver used in high-bandwidth data communications applications.

Founded in 2017 Ben Rubovitch, CEO and co-founder, the Modi’in, Israel and Cupertino, California-based DustPhotonics develops and manufactures pluggable optical modules and solutions for data center, enterprise and HPC applications. Its innovative products and technology, such as AuraDP, are targeted at enabling the next generation of optical modules and connectivity.

Commenting on the funding Ben said, “We are honored to have Intel Capital lead this round, which will help accelerate our vision of next generation optical connectivity.” Ben added, “Our optical transceiver products address the key and challenging requirements for hyperscale applications, and we will also leverage our electro-optic technology in high-density, future architectures.”

As data rates double with every successive generation, so does the complexity for meeting the demand of lower cost, lower power and higher reliability. Technology innovations, like AuraDP™, provide a significant value differentiation enabling superior performance and sustainable 100, 400 and 800 Gb/s products.

“High speed optical connectivity is essential to enabling the performance and scale of today’s data centers,” said Hong Hou, Vice President of the Data Center Group and General Manager of the Silicon Photonics division at Intel. “The DustPhotonics products complement our leading optical transceiver portfolio through short-reach, standards-based interconnects based on VCSEL technology.”

“DustPhotonics is uniquely positioned to address the ever-growing need for high performance connectivity. We are highly impressed by the innovative solutions the company has developed,” added Lip Bu Tan, Founding Managing Partner of WRVI Capital.

Dale Murray, Principal Analyst of LightCounting Market Research commented, “The cloud is leading the entire communications industry, and as a result the optical industry continues to grow as data centers, enterprises and 5G network operators invest to expand their fiber infrastructure.”