Madge Networks Inc is backing a San Jose start-up, Whitetree Network Technologies Inc, formed to build Asynchronous Transfer Mode products for the desktop, paying an undisclosed sum for a 10% stake in the company. The two plan to buy each other’s products OEM and do joint development for the 25Mbps Asynchronous Mode market. ATM25 runs on existing voice grade wire, and is based on Token Ring. The 20-employee Whitetree was formed to supply desktop local network products based on Asynchronous Transfer Mode and is a founding member of the Desktop ATM25 Alliance; its backers include Institutional Venture Partners, Matrix Partners and Greylock.
