The metro Ethernet company Atrica is to raise just $30 million, according to optical information website Light Reading. There had been speculation that the company would raise as much as $50-60 million.
The round will be led by the American venture capital fund St. Paul Venture Capital, which is run by Bill Cadogan, formerly president of ADC Telecommunications. This is St. Paul's first investment in an Israeli company.
Light Reading reports that the round is to be based on a pre-money company value of $60 million
Including this investment, the company has to date raised $68 million.
While declining comment, Atrica President and CEO Vivek Ragavan said that startups are raising money and Atrica is a startup. The response of Atrica Israel was unavailable.
Atrica, founded in 2000, develops optical communications solutions for metro Ethernet data communications networks. Its solutions combine the traditional data communications technology and high transmission rates available on optical networks.
In February this year Atrica secured $22 million in its secondary round at a post-money company value of $138 million.
The round attracted leading communications companies, such as SBC Communications (NYSE:SBC), Telia, France Telecom (NYSE:FTE), Bezeq, and some of the investors from the first round, the venture capital funds Benchmark Capital and Accel Partners, and 3Com Corporation (Nasdaq:COMS).
In its first financing round in September 2000 Atrica secured $16 million at a post-money company value of $75 million. Investors included Benchmark Capital, Accel Partners, Ascend Technology Ventures, Magnum Communications, and the Innovacom fund of France Telecom.
Atrica has over 160 workers at its R&D center in Herzliya Pituach, and its outfits in Santa Clara, California, the United States, and in Europe.