Breaking: Edgeio Assets Bounce to Looksmart

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.

Author: John

Entrepreneur living in Palo Alto California and the Founder of SiliconANGLE Media

4 thoughts on “Breaking: Edgeio Assets Bounce to Looksmart”

  1. who were the lead VCs? why do you think it was a mistake? most people thought the idea sucked and had no chance. what makes your view different.

  2. I see this as classic VC spending way to much money. why did they need $5million. What web 2.0 products did they build? A couple of mysql dbs and CSS – big deal. The VCs were smart to cut and run. Edgeio had no chance to compete at all. Come on Craigslist and Ebay..pllleezzee

  3. they came into Facebook and pitched us a deal…Arrington wasn’t there. We actually liked it. They didn’t have the FB App anywhere near what we wanted but we like the idea alot. Then they sunk fast after like 3 weeks later. Bummer.

  4. I am greatly dismayed that a, ‘not bad, yet unspectacular’, idea like Edegio was able to secure such lavish funding while real verticals for surveyed markets (shamless plug for my not yet and probably never to get funded, http://www.squidoo.com/ThruDispatch can not get a meeting to discuss help in finding a team, allocating tiny amounts of capital, etc. It’s been a champagne popping year for silicon valley undertakers like Kieth, who start, raise, and burn capital for questionable ventures (multiple times), or even over-resourced ventures, like Edgeio.

    Sour Grapes? I just turned down an angel round because of the strings attached: http://bizcast.typepad.com/clients/2007/12/a-fathers-love.html

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s