LaserComm, which develops systems to accelerate data communications, is expected to complete a $25 million financing rounds from existing investors by month-end.
The company's investors include the Cedar fund, CIBC Oppenheimer, Glade Investments, Morgan Stanley, Piper Jaffray, GE Equity, Link Technology Venture Capital, SSM Ventures, the Israeli venture capital fund Giza and several corporations.
As all the financing is being provided by shareholders, the company valuation for the round is meaningless. The company last raised money in June 2000 at a post-money company value of $263 million.
But Dolev & Abramovitch Hi-Tech Information estimates that LaserComm's value has contracted to around $135 million.
A source near the company told TheMarker.com that LaserComm does not mean to bring in new investors at this time.
The company was established in 1998 by Yochay Danziger and Eduardo Shoval, who also founded Optibase (Nasdaq:OBAS) and Accord Networks. The company develops technology to preserve optical pulses over large distances.
Its solutions enable communications companies to transmit larger amounts of data, faster, over longer distances, at lower cost.
Dallas, Texas and Tel Aviv-based LaserComm is considered one of Israel's more promising startups. It made the Deloitte & Touche Fast-50 list and in April 2001 Red Herring named it to Red Herring 100, an annually-published list of the top private and public companies that represent the leaders of tomorrow, in the magazine's opinion. The list was featured in the May edition of the magazine.
Three other Israeli companies made the Red Herring 100: XaCCT, Check Point Software Technologies (Nasdaq:CHKP) and Mellanox Technologies.