MANUFACTURING AND supply chain group PCH has raised €21 million from three leading Silicon Valley venture capitalists.
Cork-based PCH provides manufacturing, packaging and supply and distribution services to global consumer electronics players from its operation headquarters in China. Most of the products are shipped to markets in the west, including North America.
The company said yesterday that it has raised $21 million from three California-based investors, Lightspeed Venture Partners, Norwest Venture Partners and Focus Ventures. The investment is the first of its kind raised by the company, which said yesterday that it intends using it to boost growth by expanding its operations in China and southeast Asia and by growing its sales and marketing activities in the US and Europe.
PCH chief executive Liam Casey yesterday called the investors "top tier" venture capitalists. "All three of them have a big interest in China," he said. "These guys are very particular, they are interested in the space we are playing in and in the companies that we are working with."
Mr Casey added that PCH's new backers had already invested in software companies whose products complement those manufactured by the Irish group's existing clients, most of whom are well-known multinational operators.
However, PCH's contracts with its clients do not allow it to disclose their identities. It did not reveal the size of the stake that the venture capitalists had taken in PCH, but Mr Casey said that it was a minority holding. "It is a very satisfactory deal from our point of view."
He explained that the company had been seeking suitable investors for several months following an initial expansion of its operations that cost it €15 million.
Lightspeed is the lead partner in the deal. That company has invested $2 billion in over 150 technology companies in Silicon Valley, China, India and Israel.
In a statement, its managing director Eric O'Brien said PCH met rapidly growing demand from technology companies for supply-chain management.
"Given the company's strong track record in doing business with major top-tier customers, we believe PCH is poised to be the dominant player in this sector."
Norwest Venture Partners has €2.5 billion under management in 450 companies, while Focus has more than $830 million under management.
