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RAD-Bynet closing down Modules Telemetry

By Eran Gabay

Startup couldn't drum up sales and Yehuda Zisapel had enough after $6 million in investments

Hi-tech serial entrepreneur Yehuda Zisapel is closing down Modules Telemetry Solutions, the startup he founded with Uri Gur. It is a sorry end for the startup that the MIT Enterprise Forum named to be one of the most promising for the year 2000.

Modules had operated as part of the Tel Aviv-based RAD Bynet group. TheMarker has learned that the startup will not be paying compensation to the 14 employees who were fired, though it has to under law.

Modules was founded six years ago to devise solutions for telemetry (electronic devices for the transmission of data to remote sites. For instance, NASA points out, satellites can use telemetry systems to relay data about their health to control stations).

Some $6 million had been invested in Modules, mainly by Yehuda Zisapel himself.

Uri Gur is the son of a famous Israeli general, Mota Gur. He is the brains behind the company, which tapped investors for $600,000 just six months ago.

The company was supposed to create a solution for smart homes, by connecting electronic home systems to the Internet and to cellular networks. Its technology was supposed to be integrated by the electronic appliance makers, and to enable people to control their home devices from afar using the Internet or cell phone.

Modules established operations in Britain and Italy, but its progress was glacial and investors decided to shut it down. The company failed to reach a tenth of its sales milestone and couldn't seem to break through the barrier of a few hundred thousand dollars worth of sales a year.

Uri Gur commented that the company is being shut down, but he will try to save its inventory and support clients. He refused to comment on withholding pay from workers.

http://www.haaretz.com/hasen/spages/723100.html

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