In a sign of ongoing difficulties for start-up companies worldwide, Galleo, a young Israeli company which has developed a Linux-based Mobile Multimedia Communicator is reportedly on the edge of insolvency. The following English translation of a news item from an Israeli newspaper was submitted by a LinuxDevices.com reader . . .

The start-up Galleo, previously called e-mobile, is on the verge of closure for lack of funds and inability to bring in additional investments.

Galleo representatives claimed today (2nd July, 2001) that the company is not ceasing business activity and that its management is now attempting to find sources for additional funding which should allow the company to carry on. It was also reported that the future of the company shall be decided in the next few days.

The company, which employs some 45 people, claimed that not a single employee was let go, but that all work is now done by telecommuting.

The company still owes two months salary to its work force. Moreover, it has failed to deposit monies due to various savings and insurance plans.

The company refused to comment on this matter.

Galleo, which was founded in May 2000 by former employees of Motorola, developed an Internet access device that operates over cellular networks. The company had raised some 4.7 million dollars, mainly from private investors. Among the investors is Nehemia Davidson, one the founders of Gigami.

 
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