Start-up company Portalis, the developer of a system for bringing digital printing quality into the document photocopying and replication market, has run into difficulties, "Globes" has learnt. The company, which last year raised $10 million from several venture capital investors led by Clal Electronic Industries and Poalim Investments, has been left with hardly any cash. The reason was that heavy investment made in setting up a marketing and support network in overseas failed to bear fruit.
Company founders entrepreneur Gil Pekelman and his father, Dov, owner of consultancy firm POC, have already paid the price of failure. The two recently ceased to serve as company chairman and president, respectively.
Former Scitex executive Avner Hermoni is currently running the company. The father and his son still have seats on Portalis's board of directors and still hold 40% of the company. Portalis is seeking to change tack, and rid itself of the costly marketing and support network it set up overseas, by switching to sales over the Internet.
Published by Israel's Business Arena on 29 March, 2000