Early funding came from VC firms Hambrecht & Quist and JAFCO America Ventures as well as Japanese farm equipment manufacturer Kubota Ltd. [1][2] Image and video technology was just beginning to make the transition from analog (VHS, Betamax, etc.)
He hired a new professional management staff and procured $10 million in added investment from Sequoia Capital, Texas Instruments, and AMD in late 1992 and enabled the company to drive toward profitability based on the development of products including the CL550 JPEG codec, the CL950 MPEG II (prototype) decoder, and the CL450 MPEG I decoder.
These early-to-market devices proved the concept of digital video compression to a number of large OEM customers and led to the development of next-generation industry-enabling products including the CL4000 MPEG II encoder family that enabled the DirecTV program from Hughes and the CL480 MPEG I decoder that drove the VideoCD market in Japan and China in the mid 1990s.
Its board of directors included chairman Don Valentine of Sequoia Capital, T. J. Rodgers of Cypress Semiconductor, and Gregorio Reyes of Sandisk.
C-Cube Semiconductor (Nasdaq CUBED) was eventually sold to competitor LSI Logic in March 2001 in a stock transaction worth $878 million.