The seed-stage financing round was led by EuroFund Partners 2000, with $2.7 million. Other investors are the Walden Group and Polytechnos of Germany.
Israeli start-up ColorChip has completed a $6.5 million seed stage financing round. The round was led by EuroFund Partners 2000, which invested $2.7 million. The Walden Group invested the same sum, and the German fund Polytechnos joined later. “Globes” has learned that the company value for the round was $17 million, after money.
ColorChip focuses on the development of advanced passive and active chips for optical communications by Wavelength Division Multiplexing (WDM). The chips are key components in advanced optical communications networks. The company will set up fabs in the Caesaria industrial park.
Company founders are CEO Dr. Shimon Eckhouse and CTO Prof. Shlomo Rushin of Tel Aviv University School of Engineering. Dr. Eckhouse was a founder, CEO and chairman of ESC Medical Systems (Nasdaq: ESCM) from its founding until mid-1999. Moshe Price of EuroFund worked with Dr. Eckhouse to found ESC Medical Systems, forming the personal relationship that led to the investment to found ColorChip.
Price said today, “The investment in ColorChip strengthens EuroFund’s entry into the optical communications sector, which we believe will have long-term growth as the backbone for business and home broadband communications.”
Published by Israel's Business Arena on 21 February 2001