Israel Seed Partners has invested $2.3 million seed capital in startup Aelis Photonics. The financing round reportedly valued the company at something under $10 million.
Aelis develops optical communications systems that can transmit data at 40 gigabits per second.
"Despite the hard times in the optical communications market, we still believe in its future, where we hope that Aelis will play a central role," said ISP general partner Jonathan Medved.
Aelis was founded in early 2001 by Menachem Tipris, Varda Herskowits and Shmuel Levy. The three founders currently comprise the company's entire workforce, but Medved said that Aelis will soon be recruiting additional staff.
Tipris previously managed the U.S. branch of Nice Systems (Nasdaq:NICE). Herskowits had served as VP Marketing at Nur Macroprinters (Nasdaq:NURM), and Levy had headed the communications division of the Rafael armament development authority, an Israeli government outfit.