The board of directors at


decided several days ago to terminate the firm's activities, has learned. The company's Vice President of Strategic Technology Alliances Oshri Engel said the shutdown is being conducted in an orderly fashion. No debts will be left unpaid, and all 15 staff members are to end their employment with the firm by the end of August.

"We have been hit by the same hardships the advertising and Internet industries are all experiencing. The board of directors tried to get several media companies interested in acquiring EverAd. After the attempts failed, the board decided to shut down the company,? Engel explained.

EverAd developed a technology that enabled digital content copyright owners to promote sales and generate revenue from advertising. At its peak, the company employed a staff of 32. One month ago, the firm closed its U.S. offices as part of its cost cutting measures and began focusing on the development activity in the Israeli center.

The company has also announced it has incorporated its technology into


's DRM technology. To do so, EverAd did away with its unique PlayJ technology in favor of industry standards, so as to help it focus on its main business goals. But the company just couldn't survive in the long term.

Ziv Dascalu, Amir Weisberg, Benny Arbel, Itay Baz and Lior Cohen founded EverAd in July of 1999. In November of 1999 the company held a private placement according to company valuation of $12.5 million after the money. In February of 2000 the firm raised an additional $22 million according to a company valuation of $82 million after the money.

Investors in EverAd include Israeli VC funds

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Gemini Capital Fund Management

, which holds 10% of EverAd's shares. The seed fund of the VC investment firm

Star Ventures


East River Ventures


J & W Seligman and Co.

and the American

Global Retail Partners