OrCam fights for survival as investor battle, layoffs and last-ditch funding push escalate
As Orcam pivots from vision tech to hearing aids, a dispute between its founders, Amnon Shashua and Ziv Aviram, and institutional investors threatens its future, while layoffs and urgent funding efforts add to the turmoil.
A dispute has arisen between Orcam’s controlling shareholders, Amnon Shashua and Ziv Aviram, and the company’s institutional investors—Clal, Harel, Leumi, and Meitav.
Calcalist has learned that the institutional investors recently sent a letter to the company and its controlling shareholders opposing the conversion mechanism of the SAFE (Simple agreements for future equity) financing round conducted approximately eight months ago. Shashua and Aviram, who injected around $9 million into the company during that round, are seeking to convert their investment into shares at a valuation of just $30–40 million. This stands in stark contrast to the valuations of several hundred million dollars at which the company previously raised funds from the same institutional investors.
By triggering the SAFE mechanism, the company aims to limit another mechanism which protects institutional investors from excessive dilution in the event of a sharp decline in the company's valuation. In response to the letter, the company stated that it opposes the institutional investors' position, meaning they will face significant dilution. Each institutional investor currently holds a small percentage stake in the company. Orcam declined to comment.
At the same time, in an effort to keep the company afloat, Shashua and Aviram are requesting an additional $2 million loan be injected into Orcam while simultaneously planning further workforce reductions. The company has already undergone significant downsizing and is now focused on completing the development of its hearing aid product while liquidating the remaining inventory of its vision device.
Orcam, which developed groundbreaking wearable technology in the field of artificial vision, was once seen as the next major success for Shashua and Aviram following Mobileye. However, the company is now facing significant challenges, and the proposed loan is intended to provide critical lifeline funding. Orcam’s technology was widely praised for years and garnered global attention, with high-profile ambassadors such as soccer star Lionel Messi promoting it. However, on a business level, the company failed to gain traction, peaking at annual sales of just $50 million.
Orcam initially pursued an IPO, but as the market shifted toward software-based solutions, its relatively bulky product—featuring specialized glasses and a camera—became less attractive. Sales began to slow significantly by August. At its peak, the company employed over 400 people, but it has since shrunk to just a few dozen employees, effectively returning to an early-stage startup as it pivots toward hearing aid technology. Despite discontinuing its vision-related products and focusing entirely on hearing aids, Orcam continues to face difficulties. The company conducted another round of layoffs about a month ago.
Although Orcam has been working on its hearing aid technology for the past three years and has a product nearly ready for market, it has yet to generate revenue.
