As payroll and burn rate grew, private investing was secured. Many early investors were the friends and families of the employees. Initially, Euphonix was privately financed. Shortly thereafter, Andrew Kalman (who had also worked at SRS with Scott and Adam) and his Stanford University roommate Russ Kadota joined the team to develop the firmware and software, respectively, for the Crescendo. At the same time, younger brother Rob Silfvast designed the Crescendo's 4-band parametric equalizer, one of its hallmark technologies, as his senior project at the University of Arizona. Mechanical designer Adam Reif, also an SRS employee, joined Scott in 1988 to start Euphonix in a garage in Palo Alto behind Scott's residence. By day employed at Stanford Research Systems (SRS), by night he developed the preliminary concepts for what would become Euphonix's first product, the Crescendo.

The Euphonix approach to using digital logic to control multiple analog signal chains stems from original ideas by Scott Silfvast. 3.2 The System 5 All-Digital Mixing Console.3.1 The Crescendo Digitally Controlled Analog Audio Mixing Console.

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