NLM Photonics, a Seattle-based chip materials startup and University of Washington spinout, announced two new investors: Pangaea Ventures and Diamond Edge Ventures, the investment arm of Mitsubishi Chemical Corp.
They joined as part of a funding round that totals $13 million, according to a Form D filed with the Securities and Exchange Commission. NLM has reported at least $26 million in funding since 2018, according to SEC filings.
The company offers a way to move more data without burning more power. Inside a data center, information travels between chips and servers as pulses of light. The part that puts the data onto the light beam, called a modulator, is normally made of silicon. It limits how much data a link can carry, and how much power that takes.
NLM’s technology, sold under the name Selerion, is an organic electro-optic material that goes on as a liquid and hardens in place on the chip, taking over the modulator’s job from the silicon underneath. The company says it does the work 10 to 15 times more efficiently.
Applications for the technology include fiber-optic networking equipment and the links between servers in AI data centers. NLM says it could also be used in quantum computing.
Five existing investors participated in the round, which the company described as a Series A2: Emerald Technology Ventures, Oregon Venture Fund, Idemitsu, Tokyo Ohka Kogyo and StoryHouse Ventures. Private investors and company employees also took part.
Pangaea Ventures, which has offices in Canada, the United States and Japan, backs startups built on advances in materials, chemistry and biology. It says it has invested in more than 40 companies over more than 20 years. David Weekes of Pangaea is joining NLM’s board, which already includes Frank Balas of Emerald.
Diamond Edge Ventures, led by president Curtis Schickner, has $200 million to invest through 2030. It backs companies in Mitsubishi Chemical’s core markets, including advanced materials, polymers and electronics, and its portfolio includes Boston Materials, DigiLens and Eridan.
Hamamatsu Photonics, which invested previously, is not part of this round but is still a shareholder, according to the company.
The company was incorporated in 2018 as Nonlinear Materials Corp. It licensed its patents from the University of Washington, building on 25 years of research there in the labs of chemists Larry Dalton and Bruce Robinson. Robinson is one of the company’s co-founders, as is Lewis Johnson, a longtime UW researcher who is chief technology officer.
Pack Ventures, the UW-affiliated venture fund, is an investor in NLM and is also listed among the advisors to its board.
GeekWire covered NLM’s launch in 2019, when the company was raising a $1.25 million seed round and running a small production lab on campus.
Brad Booth, who spent nine years at Microsoft and joined NLM’s board in 2023, took over as CEO in 2024 from co-founder Gerard Zytnicki, who is now a corporate advisor to the company. The company raised $1 million from Tokyo Ohka Kogyo and Hamamatsu in 2023.
Last year NLM said outside testing confirmed that a 1.6-terabit chip combining silicon with its materials ran at 224 gigabits per second on each of eight channels. It started sending samples of 1.6- and 3.2-terabit chips to customers in March.
NLM is not alone in trying to build a better modulator. Lightwave Logic, a publicly traded Colorado company also working with organic materials, named NLM among its smaller competitors in its annual report for 2024.
Some of the company’s rivals have raised a significant amount of funding. HyperLight, a Harvard spinout that uses a crystal called lithium niobate instead of an organic material, has raised $117 million, including $80 million in June led by MediaTek.
NLM has worked to get its materials onto other companies’ production lines. In March the company said the chips going out to customers were made at GlobalFoundries, and that it had built modulators using Tower Semiconductor’s high-volume silicon photonics process.
