Israeli/US start-up GalayOr Networks has completed a $8 million seed round at an estimated $20-22 million company value, after money. The round was led by Evergreen Canada-Israel Investments, which invested $3.5 million, followed by STI Ventures with a $2.5 million investment and Neurone Ventures with a $1 million investment.
The financing round is one of the more noteworthy seed stage rounds in recent months, since the Nasdaq crisis worsened. It is even more noteworthy, because the company is in the optic communications field, which has been regarded by the high-tech industry as over-financed.
GalayOr is based on technology developed by CSO Dr. Dan Heronian, who founded and headed MEMS (micro-electro-mechanics systems) at Tel Aviv University. He has been developing the technology since 1996.
In late 2000, Dr. Uri Geiger and Noel Elman joined the company as CEO and CTO, respectively. Geiger was an attorney on Wall Street and in Israel, specializing in high-tech financing rounds.
Like many optical companies, GalayOr was founded by two academic teams, at Tel Aviv University and Cornell University in upstate New York, that developed the company’s technology. GalayOr currently has a staff of 13 people, all of whom work in R&D, as well as a production facility at Cornell University.
An Evergreen Venture Capital Group partner who has invested in the company, Adi Gan, says the uniqueness of GalayOr’s solution is in its technological simplicity and mass production capacity.
The basic technology integrates optics at the chip level. The company has developed a wide range of components based on its technology, including optical switches, DWDM (Dense Wavelength Division Multiplexing),and OADM (Optical Add/Drop Multiplexer), all of which use standard chips.
“Globes” has learned that the company is negotiating with strategic partners to establish a production center for the company’s components. The first stage will produce modules.
Published by Israel's Business Arena on 6 May 2001