Ishoni files for bankruptcy
By siliconindia staff writer   |   Friday, 30 January 2004, 20:30 IST
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BANGALORE: A lethal mix of economic slowdown, mismanagement and paucity of funds has run Ishoni Networks into the ground, reports an Indian daily. This start-up with centres in the Silicon Valley and Bangalore, which promised a stellar performance, has flamed out, and recently filed for bankruptcy. Since its inception in May 1998, Ishoni managed to raise $65 million in three rounds of funding, from blue chip venture firms like Bessemer, Infinity, Draper Fisher and Credit Suisse First Boston among others. Early 2002, Philips Electronics acquired a 51 per cent stake in Ishoni for $25 million. Ishoni is a creation of Prakash Bhalerao, the well known entrepreneur, angel investor and venture capitalist, who has founded successful firms like Ambit, Armedia, Amber, Sage, and Ectone. At its peak, Ishoni had over 150 engineers at its Bangalore facility. Ishoni's popularity and promise were due to a single chip product it was building. A chip that combined voice, data and security services to help customer premises equipment (CPE) makers quickly build integrated access devices and broadband communication gateway products. (Source: Economic Times)

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