Virtualization software divides a processor into separate partitions to independently run different applications or operating systems in parallel. The software is seen as a key to wringing performance from a rising tide of multi-core processors.

VirtualLogix's VLX software enables hardware virtualization for real time embedded systems while maintaining hard real-time and data throughput constraints. Its target markets include media and networking systems and mobile handsets. The company is working with chip designers including ARM, Intel, NXP and Texas Instruments.

The funding will be used to help the company expand outside the U.S. as well as to develop the next generation of its real-time software. Other investors in the round included Esprit Capital Partners, who led the round, and existing investors, Atlas Venture and Index Ventures.

As part of the investment, Tom Bradley, partner at Esprit Capital Partners, will join the board of VirtualLogix. John Mascarenas of Intel Capital will join the board as an observer. VirtualLogix has raised a total of $28 million to date.