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Lasercomm raises $21 million from existing investors

Round led by Morgan Stanley Ventures and Index Ventures

Tel Aviv and Texas-based startup Lasercomm, a developer of photonic components and modules for optical communication networks specifically designed to increase bandwidth of services provided by long-haul carriers, today announced the completion of a $21 million fourth funding round. The round was led by existing investors Morgan Stanley Dean Witter Venture Partners and Index Ventures.

Participants in the round were mostly previous investors in Lasercomm, such as Giza GE Venture Fund, GE Capital, Link Technologies and SSM Ventures.

Lasercomm was co-founded by Yochay Danziger and CEO Eduardo Shoval, who previously founded Optibase (Nasdaq:OBAS) and Accord Networks (Nasdaq:ACCD). Since it was founded in 1998, the company has raised a total of $77 million. In June of 2000 it raised $38 million according to post-money value of $263 million.

The company is currently negotiating to sell its technology to international communication service companies, though it is affected by the crisis in the global telecom market which deters leading companies from buying new communication equipment based on innovative optic technologies.

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In July of last year Lasercomm fired 30 of its workers, or 15% of its workforce. The company laid off 15 workers from its R&D facility in Israel and 15 more from its marketing and sales departments in the U.S. The layoffs followed forecasts of reduced revenue growth.