Cornice Gets More Funding For Tiny Drives

Cornice Inc., who’s tiny hard drives were featured at CES 2004 and in our CES wrap-up article, has secured $51 million in a second round of venture financing.

The round includes the Company’s previous investors – CIBC Capital Partners, Nokia Venture Partners and VantagePoint Venture Partners – and brings on board new investors BA Venture Partners and GIC Special Investments Pte. Ltd. As a result of this
second round of financing, Jim Jones, a director at BA Venture Partners, will join the Cornice Board of Directors.

This round of financing brings the total amount invested in the Company to $81 million. The new capital will be used to support sales, development, and manufacturing initiatives related to the company’s Storage Element technology. The Storage Element is an embedded storage device for “pocket-able” electronic products such as digital music players, digital video capture devices, and other products. Cornice’s two-gigabyte Storage Element, introduced in January 2004, has already been designed into products that made their debut at the International Consumer Electronics Show (CES) 2004.

“The participation of our previous investors in this round is an enormous vote of confidence in Cornice’s vision for compact, low-cost storage for electronic devices,” said Cornice Secures $51 Million In Venture Funding Page 2 of 3 Kevin Magenis, president and CEO of Cornice. “With the additional financing and very high, sustained interest in the Cornice Storage Element from leading electronic device manufacturers, we are confident that the Company has tapped into a market need that has been unmet for some time.”

“As active investors, we are proud to have been instrumental in the growth of a company with such innovative technology, solid management, and top-tier customers in the consumer electronics industry,” said Melissa Crane-Guzy, managing director at VantagePoint Venture Partners. “Cornice’s early successes in the MP3 player market have demonstrated that it is well ahead of the curve in terms of providing a storage solution that meets the cost, size, and capacity requirements of ‘pocket-able’ consumer electronics.”

“The number of portable electronic consumer devices on the market continues to grow at a phenomenal rate which increases the demand for advanced storage solutions like Cornice’s,” said Jim Jones, director of BA Venture Partners. “I am excited to join the board of such an exciting company as they address the demands of the large and growing consumer electronics market.”