RUSNANO Received 4x Return Investment in Quantenna Communications

14 February 2019

RUSNANO has completed exit from the portfolio company Quantenna Communications, a leader in the area of high-performance Wi-Fi solutions. The shareholding in Quantenna was sold on the stock market for a total of $43 mln (RUB 2.8 bln). The sale of the stake was completed at the end of December 2018. The Internal Rate of Return (IRR) on the investments in the project was 28.9% in roubles. The shareholding had increased in value by more than 4 times since 2012, when it was acquired by RUSNANO.

Quantenna, a fabless company based in San Jose, California, USA, develops and manufactures chips and modules for Wi-Fi equipment using 45 nm and 28 nm technologies. Its innovative MIMO 8x8 and MIMO 4x4 technologies meet users’ demands for high-performance Wi-Fi equipment: high data transfer speed, signal strength and reliability of the wireless network, and the ability to serve a large number of connected devices. Quantenna’s Wi-Fi chips and modules guarantee sufficient signal quality for ”data-heavy” content such as high-resolution 4K Ultra HD video, on-line games, IP telephone services, cloud computing and other big data operations, at relatively low levels of energy consumption.

Quantenna has some fifty customers, including major global telecommunications operators such as Telefonica, Swisscom, BskyB, France Telecom, Comcast, Orange and AT&T. The company’s solutions are used by such well-known IT companies as Motorola, Cisco, Samsung and Huawei in the manufacture of their products: both in cable and satellite television systems, and in home Wi-Fi systems for the retail market. Quantenna was the first company in the world to launch MIMO 8x8 chips on the Wi-Fi market. These chips allow consistently high data transfer speeds of 10 Gb/s.

In October 2016 Quantenna completed an IPO on the US’s NASDAQ exchange, generating proceeds of more than $100 mln. As of February 13 the company’s value on the NASDAQ exchange exceeded $670 mln. During the period in which RUSNANO held its stake in Quantenna, the company’s turnover increased by an average of 45% a year, reaching $220 mln by the end of 2018. In addition to RUSNANO, Quantenna’s investors included major venture capital funds (Sequoia Capital, Venrock, Sigma Partners, DAG etc.) as well as strategic investors from the telecommunications sector (Telefonica, CSR, Swisscom).

Under an agreement with RUSNANO, Quantenna opened an R&D centre in Russia, Quantenna Communications LLC, which enabled it to reduce product development costs by 60%. The company’s Russian division developed a Wi-Fi cloud analysis and monitoring platform which can diagnose and repair network problems remotely. This technology is built into all Quantenna chipsets. As a result of the opening of the Russian subdivision, MGTS, a Moscow broadband operator using GPON technology, became a customer of Quantenna. The R&D centre, based in Saint Petersburg, is also a resident of Skolkovo, employing 60 staff. The American company’s investment in its Russian subdivision will total $13 mln by 2020.

Dmitry Akhanov, Managing Director for Investment Activities of RUSNANO Managing Company, Chief Executive Officer of RUSNANO USA, Inc: “RUSNANO’s investment in innovative Wi-Fi technology has been one of the most profitable projects in the company’s history. Quantenna is an outstanding example of a company that, in addition to manufacturing a product for which global demand increased as we watched, also completed a successful IPO and transferred its microelectronics technologies onto the Russian market. Our portfolio companies from the USA have demonstrated how the transfer of technologies and the opening of R&D subdivisions in Russia can be performed effectively, both from the perspective of the companies themselves and from that of RUSNANO, as investor. All our most successful projects—Quantenna, Aquantia, Soft Machines and SiTime—developed in that way.”

Additional information

Reference

RUSNANO Joint-Stock Company was founded in March 2011 through reorganization of state corporation Russian Corporation of Nanotechnologies. JSC RUSNANO contributes to implementation of the state policy on the development of the nanotechnology industry by investing directly and through investment funds of nanotechnology in financially effective high-technology projects providing the development of new production facilities in the Russian Federation. Its primary investment focus is in electronics, optoelectronics and telecommunications, healthcare and biotechnology, metallurgy and metalwork, energy, mechanical engineering and instrument making, construction and industrial materials, chemicals and petrochemicals. 100 percent of RUSNANO’s shares are state owned. Thanks to RUSNANO’s investments, there are currently 97 factories and R&D Centers opened in 37 regions in Russia. JSC RUSNANO has profit for the last 4 years.

Management of assets of RUSNANO JSC is carried out by Limited Liability Company established in December 2013, RUSNANO Management Company. Anatoly Chubais is the Chairman of its Executive Board.

Work to establish nanotechnology infrastructure and carry out educational programs is fulfilled by RUSNANO’s Fund for Infrastructure and Educational Programs, which was also established during the reorganization of the Russian Corporation of Nanotechnologies.

* * *

About Quantenna Communications, Inc. Named to the Wall Street Journal’s “Next Big Thing” list, Quantenna is a leading developer of 802.11ac and 802.11n MIMO silicon that delivers the highest levels of performance, speed and reliability for wireless networks and devices. Headquartered in Fremont, California, Quantenna has assembled a management and engineering team with a long track record of start-up success, and is backed by some of Silicon Valley’s most esteemed venture capital firms, including Sequoia Capital, RUSNANO, Venrock, Sigma Partners, Southern Cross Venture Partners, DAG Ventures, Swisscom Ventures, Grazia Equity, Bright Capital, and Telefónica Digital.

For additional information, please visit www.quantenna.com