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Archive for May 13th, 2009

Here is a interesting article posted at WSJ Venture Dispatch.

“Wallenstein, one of the first four employees and former vice president of sales at Recordant, a provider of sales analytics technology, said he purchased the company’s patents, software and trademarks at a bankruptcy auction last month for $1,000.”

The article continues…

“Recordant took in $12 million in venture capital before filing for bankruptcy in February. It raised $3 million in Series A financing from Kodiak Venture Partners in 2005 and 2006, followed by a $9 million Series B round led by FirstMark Capital, which was then called Pequot Ventures. Aurora Funds also participated in the later round.

Recordant sold a device, about the size of a small iPod, that could be worn by sales and customer service representatives to record their interactions with customers. The company also sold software to perform analytics to help its customers identify key words associated with a sale.

Founded in 2003, with its first products on the market in 2006, Recordant focused on retail, automotive, banking and hospitality industries. It fell victim to longer-than-expected sales cycles that became too much to bear when the economic crisis hit, and filed for Chapter 7 bankruptcy in February.”

With no plans to raise money the company stands a good chance to run on a bootstrap.

“After extensive use of Recordant’s products by the U.S. National Guard, the U.S. Army had a contract to put the technology to use in their recruiting centers, but that fell through when the banking crisis hit, May said. It was also set to follow up a pilot program with an undisclosed insurance company to put the technology in 10,000 of its offices, he said. That company later declared a $1 billion loss, putting the project on hold indefinitely, he said.

May still remains confident about the potential of the business. “Somebody is going to do this someday, because there is a need for it,” he said. “We saw and heard things that were absolutely amazing in good ways and bad.”

Read the full article here.

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