Content area
Full Text
Oversupply and slack demand still plague the optical components industry, forcing startups to promise attractive terms to draw in gun-shy new investors. Optical components maker DigiLens Inc., which raised $4 million in a first closing of its sixth round of venture financing from a group of existing investors, knows it must do just that if it hopes to raise another $11 million from outside investors in a second and final closing by March 2003.
DigiLens raised the first closing from a group of existing investors led by Crescendo Ventures in Palo Alto, Calif., with participation from Alta Partners in San Francisco, Apex Investment Management in Chicago, Noro-Moseley Partners in Atlanta, Johnson & Johnson Development Corp. in New Jersey and Vision Capital in Burlingame, Calif.
"We are looking to attract a new investor for the second close and the terms of this Series E are very much designed to encourage outside participation," said Dr. Jonathan Waldern, CEO of DigiLens. Waldern admitted, though, that finding new investors in the current market would be tough.
"We acknowledge that this can be a tough...