Prysm In Financial Trouble, Could Shut Down Early Next Year
Prysm, the unified communications company headquartered out of San Jose, Calif., may be forced to shut down if it does not receive new investor funding by January 2018. Company representatives warned employees and state officials that it may be shutting down operations and laying off all its employees, with the closure happening on Jan. 21, 2018. Besides San Jose, Prysm has offices in Carmel, Ind., Chicago, Los Angeles, Atlanta, Dallas, New York City, Concord, Mass. and several international offices. It has over 400 employees.
On Nov. 22, Prysm submitted a WARN notification to the Indiana Department of Workforce Development that it will be forced to close if it does not acquire new funding, which it is actively seeking. Asaf Kharal, the company’s VP of legal matters, told the Indiana Business Journal that the company does not actually expect to close, the notice is a legal precaution and that it is in discussions with multiple investors at this time.
The company, founded in 2005 and showing its first laser phosphor displays in 2010, raised $100 million in funding in 2011. Prior to that, it had raised approximately $47.5 million in two prior funding rounds. Since its founding, Prysm has made several company acquisitions, including Anacore, which made a software-based platform for collaboration, and made a signficant pivot to become a combination hardware and software-based company that offered collaborative and communicative video wall solutions for enterprise solutions, instead of just a display company. It is currently priced per user, per month, with several packages available that include hardware in the monthly fees. Download Prysm’s corporate brief here.
Prysm told rAVe, in a statement echoing what Asaf Kharal told the Indiana Business Journal: On November 22, 2017, Prysm made a filing regarding possible changes to its personnel. This was a precautionary filing only and has been discussed with Prysm employees. Prysm is actively engaged in discussions with potential investors and partners to secure additional funding and no closures or personnel changes are planned at this time.