Startup ActiveCool, provider of cooling solutions for chips, raised $300,000 from its shareholders, Noah Dankner's Ganden and Emblaze (LSE:BLZ) founder Tzuri Dabush, and Tzion Simantov.

ActiveCool CEO Ronen Meir told TheMarker the company was negotiating to raise $2 million. Meir added the company was about to sign an agreement with a major European corporation to distribute its technology in Europe and Taiwan.

Founded in April 2000, ActiveCool develops technology for active cooling and temperature control of computer chips. The company refused to explain the technology, but said it was based on an electronic mechanism meant to replace the fan that cools off computer processors.