Startup Atrica expects to secure up to $60 million in third-round financing by year-end, but at a severely reduced company value, reports Dolev & Abramovitch Hi-tech Information.
The company, which supplies Ethernet equipment for metro communications networks, has seen its pre-money value shrink from $116 million in February 2001 to $80 million, possibly $70 million, D&A says.
Atrica CEO Avinoam Rubinstein confirmed that the financing round should be completed in a few weeks. He declined to discuss the sum raised or company's valuation.
Two months ago he told TheMarker.com that the September 11 attacks on the U.S. had badly hampered the company's efforts at raising money.
Atrica, founded in 2000, maintains offices in Herzliya, the U.S. and Europe. Its investors include Israeli venture capital funds and France Telecom.