PETALUMA, Nov. 19, 2008 -- [UPDATED 12:05 p.m.] Raydiance, maker of compact, ultrashort pulse lasers, received $20 million in Series D funding, it was announced today.

Greenstreet Partners led the round, joined by previous funder Draper Fisher Jurvetson. Raydiance raised $25 million in A, B and C funding and $10 million in government-funded research and development contracts.

Former CEO of AOL Barry Schuler launched the company's commercialization of the breakthrough laser platform four years ago. Raydiance is now led by former Dey Laboratories CEO Mel Engle.

Raydiance also announced its new Raydiance Discovery 2.0 system. Twice as powerful as the first generation system, the software-controlled Discovery 2 delivers a shorter pulse and is expected to find a greater range of applications.

Currently Raydiance systems are being deployed in about 30 research laboratories for medical analytics, mineral assaying, military surveillance, laser skin grafting and other uses.

"Since launching our first ultrafast laser platform we've been committed to constantly evolving each generation of this system while ensuring that customers have unencumbered access to our newest technology," said Raydiance co-founder and President Scott Davison. "To date we've seen incredible progress made by our customers and research partners, and we look forward to seeing the new products and services that will be enabled and powered by our newest product."

The first rounds of investment capital brought the platforms into use, he said. The latest round will help usher the products and services now under development to the market.

"Stent technology and solar cell technology are two areas we'll be moving into, leading to possible partnerships with North Bay companies," said Mr. Davison.

Unlike the cumbersome, complex and difficult-to-operate traditional lasers, the Raydiance platform can be installed in a laboratory or physician's office in 30 minutes using a standard electrical outlet. Mr. Davison likens it to the PC and predicts that it will become smaller and more powerful with each iteration.

Raydiance employs about 55 in Petaluma. The company is in growth mode but will be hiring judiciously during uncertain economic times, he said.