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GaN Systems Raises USD$20 Million in Series C Financing

OTTAWA, ONTARIO--(Marketwired - May 7, 2015) - GaN Systems Inc., the leading developer of gallium nitride power switching semiconductors, today announced a USD$20 Million venture capital financing. Cycle Capital Management led the round and was joined by BDC Capital and Beijing-based Tsing Capital, as well as existing investors Chrysalix Energy Venture Capital and RockPort Capital. As GaN Systems' customers launch multiple consumer and enterprise products designed with its gallium nitride (GaN) transistors, this financing will enable the company to ramp up sales and marketing support for its rapidly growing international customer base and to continue manufacturing line expansion.

GaN-based transistors are increasingly positioned to disrupt the $15 Billion power transistor market, and GaN Systems is one of the clear leaders in realising this potential. The company's innovative Island Technology® results in devices that are smaller and more efficient than traditional silicon design approaches. Its products enable previously unseen switching efficiencies that lead to more sustainable energy use and increased power efficiency, while reducing costs and environmental impacts of some of the world's fastest growing industries.

GaN Systems' breakthrough power electronics transistors can be used for a wide range of applications, from more efficient data centers and solar inverters, to thinner TVs, smaller more powerful motors, longer range electric vehicles (EVs), and a multitude of other consumer, enterprise, industrial and transportation applications.

"By dramatically increasing power electronics efficiency while reducing resource consumption and environmental impacts, GaN Systems' innovative Island Technology is emerging as the leading solution for the power semiconductor industry which now faces a major shakeup. We see great value in supporting a company that is well on its way to becoming a leader in this multi-billion dollar market. This deal was led by Cycle Capital's Managing Partner Claude Vachet and our semiconductor seasoned investment team, and we are very excited to welcome GaN Systems as the newest addition to our portfolio," said Andrée-Lise Méthot, Founder and Managing Partner at Cycle Capital.

"With a long history of cleantech venture capital investing in China, we are pleased to add GaN Systems to our portfolio of energy efficiency companies. China represents one of the largest and fastest growing markets for power electronics globally, and we look forward to helping support GaN Systems' expansion and product delivery," added Michael Li, Managing Partner at Tsing Capital.

"We are delighted to welcome a diverse group of investors who collectively will provide critical financing, strategic advice, and additional entry points into growth markets while we establish GaN Systems as a recognised leader in the power semiconductor market," said Jim Witham, CEO of GaN Systems. "As I visit customers around the world, they are showing me how our technology is enabling more efficient products that are one quarter the size and one quarter the weight, as well as entirely new products that could only be achieved with our super-high speed switches."

About GaN Systems

GaN Systems is a fabless semiconductor company that is the first place systems designers go to realize all the benefits of gallium nitride in their power conversion and control applications. To overcome silicon's limitations in switching speed, temperature, voltage and current, the company developed the most complete range of gallium nitride power switching transistors for a wide variety of markets. GaN Systems' unique Island Technology® addresses today's challenges of cost, performance, and manufacturability resulting in devices that are smaller and more efficient than other GaN design approaches. The company is headquartered in Ottawa, Canada. For more information, please visit: www.gansystems.com

About the Investors

Cycle Capital Management

A pioneer among Canadian venture capital funds focused on the clean-tech sector, Cycle Capital invests in companies developing and commercializing clean technologies and striving to reduce greenhouse gas emissions, optimizing resource use, and improving process efficiency throughout a product's life cycle. With assets under management of $230 million, Cycle Capital invests in Quebec and northeastern North America. Cycle Capital is composed of experienced investment professionals, strategic advisors, and industrial partners with in-depth knowledge of the sector. Cycle Capital has a special relationship with its strategic partners, notably Brookfield Renewable Energy, Rio Tinto Alcan, Cascades, Group M3, Lonza, Gaz Métro, Systemex Énergies, Aluminerie Alouette, and Hydro-Québec.

Tsing Capital

Founded in 2001 on the philosophy of "Doing Well by Doing Good©," Tsing Capital has since become one of the leading global investors in environment and cleantech investment. With the vision that sustainability would be a fundamental paradigm shift in human activities and create the greatest economic opportunity of our time, the firm invests in cleaner and better ways of producing and living, including renewable energy, environment protection, new materials, energy efficiency, sustainable transportation, IOT, greener production, etc. As China emerges as the largest market, Tsing Capital is poised to seek superior returns for its investors environmentally, socially, and financially.