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Ceyba shuts down
By Leo Valiquette, Ottawa Business Journal Staff
Tue, Aug 5, 2003 11:00 AM EST
Ceyba Inc., once touted as one of Ottawa's best-financed and most promising startups, has closed its doors due to the difficulty of securing additional financing.
The closure, which came on Friday, follows a round of cuts in May that reduced the headcount by about a third to 120. The last substantial news from the company was July 2002, when a 20-per-cent staff cut was made.
Online industry publication Light Reading was able to confirm the news with CEO Scott Marshall after anonymous tips about the demise of the company began to filter into both Light Reading and the OBJ Monday evening and Tuesday morning.
The company, which began as Solinet Systems in May 2000, was developing optical components for long-haul networks.
Marshall told Light Reading that the company's board of directors did not believe Ceyba could secure another round of funding. The company still had cash, but lost the support of one of its key venture capital investors for a round planned for later this year.
Marshall, who didn't identify the VC, said the board wasn't optimistic about the odds of finding a suitable replacement to make for an adequate round of financing.
In a slow market Ceyba was still able to secure two customers for a product deployment, while two others were testing Ceyba's products. Unless Ceyba's assets are sold quickly, those deals will fall through.
Ceyba's troubles are not unique, as the market for next-generation long-haul networking equipment continues to languish and other startups, such as Innovance Networks, desperately await some recovery in the market.
The cuts last summer were meant to reduce Ceyba's workforce to a size appropriate to the company's expectations for 2003. Those cuts were concentrated among installation and servicing staff. The cuts in May hit R&D staff.
Ceyba made headlines two years ago with one of the region's largest ever venture capital wins, $144 million in May 2001.
Ceyba was founded in May 2000 by by three former Nortel Networks employees and a Lucent Microelectronics engineer. Two months later it received $22.15 million in seed financing.
In October 2001 the company changed its name from Solinet Systems to Ceyba. The ceyba is a tree that grows in tropical climates and is known for rapid growth, longevity and emergence above the rest of the forest.
By Leo Valiquette, Ottawa Business Journal Staff
Tue, Aug 5, 2003 11:00 AM EST
Ceyba Inc., once touted as one of Ottawa's best-financed and most promising startups, has closed its doors due to the difficulty of securing additional financing.
The closure, which came on Friday, follows a round of cuts in May that reduced the headcount by about a third to 120. The last substantial news from the company was July 2002, when a 20-per-cent staff cut was made.
Online industry publication Light Reading was able to confirm the news with CEO Scott Marshall after anonymous tips about the demise of the company began to filter into both Light Reading and the OBJ Monday evening and Tuesday morning.
The company, which began as Solinet Systems in May 2000, was developing optical components for long-haul networks.
Marshall told Light Reading that the company's board of directors did not believe Ceyba could secure another round of funding. The company still had cash, but lost the support of one of its key venture capital investors for a round planned for later this year.
Marshall, who didn't identify the VC, said the board wasn't optimistic about the odds of finding a suitable replacement to make for an adequate round of financing.
In a slow market Ceyba was still able to secure two customers for a product deployment, while two others were testing Ceyba's products. Unless Ceyba's assets are sold quickly, those deals will fall through.
Ceyba's troubles are not unique, as the market for next-generation long-haul networking equipment continues to languish and other startups, such as Innovance Networks, desperately await some recovery in the market.
The cuts last summer were meant to reduce Ceyba's workforce to a size appropriate to the company's expectations for 2003. Those cuts were concentrated among installation and servicing staff. The cuts in May hit R&D staff.
Ceyba made headlines two years ago with one of the region's largest ever venture capital wins, $144 million in May 2001.
Ceyba was founded in May 2000 by by three former Nortel Networks employees and a Lucent Microelectronics engineer. Two months later it received $22.15 million in seed financing.
In October 2001 the company changed its name from Solinet Systems to Ceyba. The ceyba is a tree that grows in tropical climates and is known for rapid growth, longevity and emergence above the rest of the forest.
