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News
Issue #2001 - 14
(Apr. 2001)
(Updated
April 4, 2001)
ACQUISITIONS,
MERGERS & AGREEMENTS
NetMorf : A Causality of Economic Downturn:
One of the causalities of the
current economic downturn is the demise of wireless Web software developer
NetMorf. On March 16th, the company announced it had ceased its
operations, leaving 85 employees out of job.
NetMorf was in its third round of financing when an unidentified investor
unexpectedly withdrew, leaving the company unable to meet payroll. Since its
launch in 1999, the company had received close to $12-million in funding,
with just under $10.9-million from Vantage
Point Venture Partners.
NetMorf’s flagship product SiteMorfer enabled the transformation of
e-business content and transactions for delivery to wireless devices. At the
time of announcement, it was
unclear what will or won’t happen to NetMorf’s 14 customers, including
book retailer Barnes
& Noble, as well as its partnership agreements with several wireless
firms, including EnvoyWorldWide, SignalSoft, and Intercede.
Mobileinfo Comments and
Advisory: Death of NetMorf tells
us how risky this wireless m-commerce business can be unless the investors
understand that they must not expect quick payback. In our humble opinion,
VCs were riding a structurally unsound (roller) coaster. The upside was
created by the same VCs supported by the investment bankers. We always
stated on this site that m-commerce will take a long time to come to
fruition. Notwithstanding that, NetMorf had good technology and a good team.
We do not think NetMorf was a casualty of economic downturn. It was a casualty
of fickle-minded investor who did not deserve to be in the m-commerce space
in the first place.
Note: This news release may contain
forward-looking statements. Readers should take appropriate caution in
developing plans utilizing these products, services and technology
architectures. All trademarks used in this summary are
the property of their respective owners.
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