Since we have been in the process of raising capital for RiseSmart, I could identify with this post from Toby Dayton at Diggings:
Edgeio announced late last week that it was ceasing operations and looking to liquidate its assets. The company, which had recently raised $6M in capital ($3M of which came from Intel), tried to build a business by aggregating classified listings from all over the web. In explaining the reasons why the business was unsuccessful, CEO Keith Teare stated, “I would say it came down to lack of vision on the part of investors to see the platform as part of the future.” The arrogance and absurdity of Teare’s statement is dumbfounding.
I won’t be as harsh as Toby. I can certainly understand the frustration of a CEO who still believes strongly in his dream, but who can’t get the investors to come along with him. Ultimately, my guess is that Teare’s emotions simply got the better of him. Michael Arrington of TechCrunch, a co-founder of Edgeio, was more philosophical:
This is the way the startup world works. You win some, but you lose most. Edgeio wasn’t meant to be a success.