ChipCrunch:
"Cedar Rapids, Iowa is a rather unusual place for a startup to emerge from?"
Drew Childress:
"That’s true. But what you might not know is that Cedar Rapids actually has the highest number of engineers per capita of any major metropolitan area in the US with Rockwell Collins being the major employer."
ChipCrunch:
"I didn’t know that. What prompted the company to move its headquarters to Austin, TX recently?"
Drew Childress:
"Although we have plenty of EEs in Cedar Rapids, what we lacked were people that really understood telecom, and people that wanted to be engaged in startups. Additionally, when talking to Venture Capitalists, they very much considered Cedar Rapids a fly over zone, meaning, they urged us to move to an area where both talent and VCs were more readily available."
ChipCrunch:
"Obviously you had other choices than Austin, such as Boston or San Jose. So why did you choose Austin?"
Drew Childress:
"Boston seems rather more focused on the medical startups. San Jose and Austin both feature a lot of electrical engineering talent, however being from the mid-west we felt a lot more at home in Austin. As a matter of fact, if you could pick up Austin and place it somewhere in the mid-west it would fit right in, it is very much a mid-west kind of town. Additionally, other factors such as the cost of living and receptiveness of VCs also influenced our decision. "
ChipCrunch:
"What are the plans for your site in Cedar Rapids?"
Drew Childress:
"We’re definitely keeping the Cedar Rapids site. We currently employ several outstanding engineers there who did not want to relocate down to Austin. Further, we lease a lot of land up there. Land we most likely could not afford down here. We have over five miles of buried wire up there and as such, unlike other companies which rely on simulations to test their theories, we are able to test everything on actual wires. "
ChipCrunch:
"Your company web-site is rather vague on how many employees you currently have, how much funding you have received and from whom, and so on. Can you elaborate?"
Drew Childress:
"Sure. We currently employ sixteen people almost all of whom are electrical engineers. We just recently hired three engineers in Austin, and plan to hire an additional eight or so throughout the year. We have had several rounds of funding in which we were able to raise a total of 16 million. We’ve been able to use that money to run the company for about five years, so we are very conservative cash wise. We are currently working on Round D for our funding."
ChipCrunch:
"With the economy being as it is, do you have any concerns about raising more money?"
Drew Childress:
"Not really. If you have a promising technology that can solve some real problems, there is still plenty of money out there. On a related note, an interesting thing about the economy is that the demand for home services such as internet and cable TV tends increase when times are bad. People spend more time at home and look for cheaper entertainment alternatives to going out."
ChipCrunch:
"Now to the real question. Everybody seems to be enamored with wireless these days. So why do you believe that wired is the way of the future?"
Drew Childress:
"If you understand data communications and the industry, you will quickly come to understand that in the industry nobody believes in wireless for large data transfers. In order to deliver IPTV or related video services you need high quality, low jitter and low latency. In other words, you need guaranteed quality of service. A customer might tolerate mediocre video quality on a small portable device screen, but when the same customer watches content on a big screen television the quality being delivered better be top notch or the customer will be very unhappy. You can look at air as one large coaxial cable where all the wireless devices share bandwidth, and while this will work, the throughput will suffer and so will the content quality that is being delivered."
ChipCrunch:
"Why not buffer the content then? For example, the same way that providers such as Netflix do before streaming a movie?"
Drew Childress:
"Buffering is certainly a solution, if you only want to watch a specific stream. What happens when you want to browse channels? You can’t expect the consumer to wait several seconds while switching channels. Nor can you expect them to have enough storage space and bandwidth to buffer all of the channels simultaneously. And to complicate things even further, bandwidth requirements will only increase from here on. 3D television is coming down the pipes and that by itself will double the required data rates."
ChipCrunch:
"Ok. So now that we have an idea about the problems, what do you guys bring to the table to solve them?"
Drew Childress:
"We have developed a new wire-line technology for home networking that we call TimeFlux. TimeFlux works on any type of wire and at speeds significantly faster than anything that is currently available. The type of wiring and quality of wiring is unique in every house, and as such for us to be able to use any kind of wire and our ability to maintain high throughput even on lower quality wires is a huge advantage. As a matter of fact, just last month we successfully completed a mock home test with a potential customer, and we achieved speeds twice as fast as anything they have ever seen."
ChipCrunch:
"I understand you don’t want to reveal all the details about TimeFlux, but can you expand a little bit on how you are able to achieve these high speeds?"
Drew Childress:
"Sure. But let me first start out by taking a step back and explaining a couple more problems that telecom providers currently face. Many technologies, such as vdsl2 for example, promised 100 Mbps at a range of up to 5000 feet. As these technologies exited the labs, reality quickly kicked in and currently vdsl2 can at best do about 25 Mbps at up to 3000 feet. This shortcoming in performance stems from the fact that current technologies are hitting fundamental physical limits of carrier based modulation schemes, which cannot be overcome by increasing the signal power or by more sophisticated encoding techniques. In the case of vdsl2, as signal power is increased, waves begin jumping off the actual wire resulting in a lack of throughput. What current schemes essentially do is modulate the frequency and multiplex in time. With TimeFlux we do exactly the opposite: we modulate time and multiplex in frequency. Based on the math alone, we are able to achieve twice the throughput of competing technologies simply because we are twice as efficient with bandwidth."
ChipCrunch:
"I can imagine that that there are quite a few companies interested in your TimeFlux technology. How do you intend to bring it to market?"
Drew Childress:
"We are currently designing TimeFlux based products for the commercial market (hotels, hospitals and multi-tenant buildings). Our UltraJack family of wall-mounted network adapters can utilize the existing wiring in these buildings to deliver high quality connectivity throughout the building. Next up will be products for the residential market and we may also offer TimeFlux chipsets a little further down the road."
ChipCrunch:
"Thank you so much for your time and all the information that you shared. Best of luck with TimeFlux and please keep us abreast of any new developments at LightWaves."