As shares of Sycamore Networks (Quote) have fallen sharply over the last year, so has the net
worth of cofounder Desh Deshpande -- but that hasn't stifled his generosity.
Today, the entrepreneur and his wife Jaishree announced a $20 million donation to establish the Deshpande Center for Technological Innovation (DCTI) at
the Massachusetts Institute of Technology.
"Our hope in creating this resource is to give creative new entrepreneurs and companies the ability to translate their ideas into innovative companies and products,"
Desh Deshpande said.
The initiative, which will be under the auspices of the school's engineering department, will support research by students,alumni and faculty in collaboration with
the region's information technology and venture capital communities. In its first year, the center will award five seed grants of $50,000 and three research grants of
$250,000.
MIT president Charles Vest said the DCTI will will give "undergraduates practical experience in the engineering field and provide a stimulus for
technology innovation in the region, and more broadly, in the nation."
As the center grows, Vest expected that its scope will broaden beyond New England.
Sycamore was an early leader in the optical networking space. Just before the Nasdaq flameout in spring of 2000, the Chelmsford, Mass., firm's stock traded at nearly $190 per share.
But as its customers, namely large telecom carriers, began delaying or canceling orders for new equipment, Sycamore's sales dropped off.
This morning, in the midst of a modest rally, the issue was up .31, or 5 percent, to 5.93. And in the last 52 weeks, SCMR has ranged from 3 to 5.2125. The company still has a market valuation of $1.623 billion.
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