The financial backers of database solutions startup HyperRoll may be shrinking from fulfilling their commitments, TheMarker.com has learned.
Two weeks ago the company received a signed term-sheet for a $5.5 million investment by information storage solutions company EMC Corporation (NYSE:EMC), Giza GE Venture Fund, eXseed Technology Investments, Microdent, which is owned by Israeli industrialist Eitan Wertheimer, and Denali Ventures.
TheMarker.com has learned that EMC intends to halve its investment to $1 million. Giza is consequently considering withdrawing altogether from its $2 million commitment.
No comments from HyperRoll itself or from EMC could be obtained.
"It is a good company and were still in the picture. Nothing has been finalized yet," stated Giza chairman Zeev Holtzman.
"We beloeve in the company and will continue to invest in it," Denali President Noam Karstaedt told TheMarker.com.
HyperRoll, founded in 2000, develops enterprise information and database solutions. To date Denali, eXseed, Microdent, and private investors have invested $2.6 million. The company employs 25 people at its development center in Omer, southern Israel, and at a branch in Santa Clara, California.