Sources inform ''Globes'' that the shareholders of Israeli start-up Optichrom decided to suspend operations and close the company.
Most of Optichrom's employees were laid off at the beginning of the year, after the company failed to reach its development milestones, and the shareholders decided at the time not to invest further. Elron (Nasdaq: ELRN) and Jerusalem Global Ventures committed to investing $5 million in the company in the first financing round. Elron owns 5% of the company.
Optichrom developed components for DWDM-technology optical communications systems, and had set up a 7,000 sq.m. manufacturing laboratory in Migdal Ha'Emek, but was unable to find customers to hold field tests of its products.
Optichrom was one of dozens of start-ups worldwide to develop advanced optic communications components in the past two years, but were unable to sell them to the large communications systems manufacturers, due to the telecom crisis.
Jerusalem Global Ventures announced that Optichrom is now trying to sell its know-how and equipment. Jerusalem Global Ventures also stated it would continue to look for and invest in good companies in the communications sector.
Migdal Ha'Emek-based Optichrom was founded in 2000 by CEO Dr. Ilan Sela, who earlier founded in PetroMetrix in 1992.
Published by Globes [online] - www.globes.co.il - on May 2, 2002