Alien Technology, struggling radio tag company, raises $33M more
Alien Technology, the company in Morgan Hill, Calif., that failed in its audacious effort to go public last year, has raised another $33 million in financing.
Alien filed to go public last year, while losing money on every sale of its radio frequency identification (RFID), and was forced to withdraw when markets wouldn’t support it. See our coverage here. Mark Perry, partner with NEA, a backer of Alien said in November he hoped to raise $50 million for the company, so the latest round raises questions. Its IPO filings showed that from January through March 2006 alone, the company burned through $15.7 million in cash.
Alien couldn’t convince new investors to help it. The latest round of financing came from insiders: Advanced Equities and Sunbridge Partners led the round, which also included Rho Ventures and NEA. The company has raised more than $291 million in its 13 year history, and has yet to make money.
RFIDs are radio tags that can transmit data to a receiver, and are often used to place on products for more efficient supply-chain management.
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