Straatum Processware, a Dublin software firm backed by a number of high profile venture capital firms, is believed to be engaged in a last ditch effort to find funding to keep the company afloat.

The company, which supplies testing software to manufacturers of semiconductors, has received venture capital funding of $16.75 million (€12.32 million) since 1998.

The third and last round of venture funding was in early 2005 when Californian investors Vision Capital, lead a $5.65 million investment that also including Dublin-based ACT Venture Capital and Intel Capital, the venture arm of the world's largest chip-maker.

Intel is also Straatum's largest customer.

Sources close to the company say that it began to run into difficulties late last year. Since then ACT and Dublin businessman Tom Jones are believed to have been funding the company on a month-to-month basis. Mr Jones is a member of fund investment board at Cork venture capital firm Kernel Capital Partners.

Straatum's backers are understood to have been in negotiations to sell the company to US-based Rudolph Technologies, based in New Jersey, but the deal fell through in recent weeks.

Industry sources suggest that it is costing between €200,000 and €250,000 per month to keep the company afloat. It employs approximately 20 people and is based in Kilbarrack, Dublin.

It is believed that any new funding would be provided to keep the company afloat while a buyer is found for some or all of its assets.

The firm held a board meeting this week to discuss the funding crisis.