Chiaro Networks

About Chiaro Networks

Chiaro Networks, founded in 1997 by Dr. Eyal Shekel, operated in the telecommunications sector, specifically focusing on developing carrier infrastructure-class IP/MPLS routing platforms. The company aimed to address the challenges service providers faced with existing routers by creating a platform that addressed high reliability, in-service scalability, and operational ease. This technology was designed to enable telecommunications carriers to merge multiple networks into a single, more efficient and cost-effective converged network capable of supporting emerging services.

The company's primary product was the Enstara platform, a multi-channel router communications system. This platform was developed to handle the rapid annual increase in IP traffic on major network backbones, which was causing significant bottlenecks. Chiaro Networks sought to compete in the core router market against established giants like Cisco Systems and Juniper Networks. The business model revolved around selling this high-capacity routing hardware to large service providers and telecommunications carriers.

Chiaro Networks was notable for its significant fundraising efforts, securing a total of $216 million over its lifetime. One of its funding rounds in September 2000 raised $100 million, which at the time was the largest single round for an Israeli company. A subsequent round in February 2002 brought in an additional $80 million from a consortium of high-profile venture capitalists including Delta Ventures, Sevin Rosen Funds, and STAR Ventures. Despite this substantial financial backing, Chiaro Networks ultimately faced challenges in breaking into the competitive market. In 2004, the company entered a strategic partnership with ECI Telecom, which included a distribution agreement for the Enstara platform and a $6 million financing deal. However, by May 2005, the company's intellectual property was acquired for less than $10 million by investor Efi Gildor.