Unable to flush out demand for its technology and secure more funding, Lexington, Mass.-based start-up Chinook Communications told stockholders last month that the company was in the process of shutting down.
In a letter issued on March 26, company President and CEO Sonia Khademi and Executive Vice President and CFO Elliot Honan informed shareholders that Chinook's board of directors and management decided to cease operations.
"Despite our best efforts," the letter read, "we were not able to secure any substantial customer for our product/technology. Accordingly, we were not able to attract additional funding, particularly in this investment climate."
As part of its winding down process, Chinook has retained a "small group" to begin selling of the company's assets and negotiating and liquidating its liabilities, the shareholder letter continued.
Chinook executives were not immediately available for further comment by CEDaily Direct's Thursday deadline. Business phone numbers for Khademi and Honan were both reported as disconnected.
Chinook had its coming-out party last April, touting technology that promised to boost cable bandwidth efficiency. Chinook proposed that its custom-made silicon for cable modem termination systems, set-tops and cable modems could cram another 6 megabits of bandwidth within each 6 MHz channel on an operator's system.
Chinook netted $17 million in Series A funding led by OneLiberty Ventures, WaldenVC, BancBoston Ventures, Highland Capital Partners and YankeeTek Ventures.