Reva lands $13M in second round of venture capital
By DAN O'BRIEN, Sun Staff

CHELMSFORD -- Reva Systems, a provider of radio-frequency identification (RFID) technology, today announced a second round of venture capital totaling $13.5 million.

The round includes a capital contribution and technology standards collaboration with Cisco Systems Inc.; and a capital investment and strategic relationship with SAP Ventures, a division of SAP AG, the German enterprise software giant.

The company, founded in late 2003, has raised $20 million.

Chairman and co-founder Ashley Stephenson said gaining affiliations with networking giant Cisco and SAP is a big step in Reva's development.

"These are very desirable investors," Stephenson said, adding that many of those companies' customers could become Reva customers.

RFID is a wireless technology used to track inventories and other assets. Whereas the traditional bar-code system requires companies to individually scan items as they arrive from shipment, RFID enables such counts to be conducted by the pallet, saving time and money.

Reva, which employs 35 people and is headquartered at 100 Apollo Drive, has a product called a Tag Acquisition Processor (TAP), a rack-mountable device that allows firms to remotely gather all information in regards to inventory, then analyze the data for efficiency improvements.

"It's a ready-made appliance, and we expect Cisco and SAP customers to use it," Stephenson said.

Stephenson explained that Cisco and SAP play an important role in many retail operations. Cisco would be a key consideration for stores seeking to install a wireless networking system that uses RFID to track in-store inventory; similarly, RFID technology could be used for applications and records at the corporate office -- an area where SAP is a leading provider.

Stephenson said Reva will be looking to invest its new funds toward more intensified global expansion. He said the company has a presence in South America, Central America and Europe.

"We're not yet in the Far East, but we hope that by the end of the year to be in the Taiwan-China region," he said.

Investments were also made by Reva's original venture backers and individual investors, including North Bridge Venture Partners and Charles River Ventures.

Dan O'Brien's e-mail address is dobrien@lowellsun.com.