Optical chip-to-chip interconnection solutions developer Compass-EOS Ltd. today simultaneously announced that it has raised $42 million and that it was firing dozens of employees as part of streamlining measures.
The current financing round comes on top of the $120 million Compass-EOS had previously raised. Two new investors participating in the round: a US private equity fund and Russian nanotechnology investor Rusnano Corporation. They were joined by the company's current investors Comcast Ventures. Cisco Systems Inc. (Nasdaq: CSCO), Deutsche Telekom AG unit T-Venture Holding GmbH, Benchmark Capital, Pitango Venture Capital, North Bridge Venture Partners, and Marker LLC.
Compass-EOS was founded in 2006 by president Michael Laor and chief scientist Dr. Michael Mesh. Its CEO is Gadi Bahat. The company operates in the silicon photonics field - technology for optical chip-to-chip interconnection, using lasers instead of copper wire.
In March 2013, Compass-EOS emerged, after operating under the radar for six years, with the launch of its first product, a router based on the company's icPhotonics technology, which has been installed by several communications services providers. The company claims that its router is smaller, more efficient, and uses less power than similar network routers.
This is the first time that Compass-EOS, which does not disclose its strategic moves, has publicly mentioned a financing round. The reason may be the firing of some of its 150 employees - reportedly between a quarter and a third of its workforce.
Bahat said, "The investment is a vote of confidence by our investors and our strategy has been adjusted to maximize our growth and success in the world."
Published by Globes [online], Israel business news - www.globes-online.com - on November 18, 2013
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