AGOURA HILLS, Calif., Sept. 13 (LocalBusiness.com) -- In a Series B round of venture funding, Internet Machines Corp. raised $30 million which will be used for working capital.

Agoura Hills, Calif.-based Internet Machines is a fabless semiconductor company, developing software and chips for the emerging 10 Gigabit a second data communications market. The company's chips are being developed to sit in the servers, switches and routers in fiber optic networks.

As a fabless semiconductor maker, when the privately-held company develops a chip, it will contract out the production of the chip to a third party.

Internet Machines is following an industry trend, where some chip makers have found it cheaper and more efficient to focus on just developing semiconductors and letting manufacturing companies build the chips.

Competitors include Camarillo, Calif.-based Vitesse Semiconductor Corp. and San Diego-based Applied Micro Circuits Corp.

In its first round, Internet Machines raised $8.2 million in funding from Redpoint Ventures, a venture firm with locations in Los Angeles and Menlo Park, Calif. Redpoint Ventures makes investments in firms with an emphasis on the next generation and broadband Internet.

According to Securities and Exchange Commission documents, Redpoint Ventures also participated in the $30 million Series B round of funding.

Neither Redpoint nor Internet Machines could be reached for comment.

Internet Machines was founded last January.