It is announced that the auction is done for the Edgeio assets. Edgeio shut down a few weeks ago after it was determined at a board of directors meeting that a b-round wasn’t doable.
I liked the auction idea. Instead of some board appointed knucklehead that runs a liquidation, founder Keith Teare ran his own auction to fetch a higher price. That took guts on his part. I looked over the assets and spoke with Keith at length. This was a good deal for Looksmart. Looksmart got a bargain. They look smart for this move and Intel Capital gets a ‘black eye’ and the end of year write-off. There was a ton of smart web2.0 product work done by Keith Teare, Matt Kauffman, John Dowd and the engineering team. I think that their VCs let them down. I’m sure this will be well documented in TheFunded.com
This story gets play because my friend Mike Arrington was the cofounder of Edgeio. Edgeio was started by Keith Teare and Mike Arrinton in Keith’s garage on Hamilton street in Palo Alto. I live down the street from Keith and used to stop in a few times a week as they were conceptualizing it. I liked the idea a lot and think it was too deep for the impatient VCs these days. I know Mike liked the idea but Techcrunch was a passion that he started and built and that train ran fast. He took it.
Keith Teare is a serial entrepreneur and he’ll be back again. He’s a billion dollar idea machine.
RIP Edgeio: Great idea, strong mgt team, growing market, wrong financial syndicate team.