High Tower Software was the first to fall, closing their doors in November. The company chose to not provide any notice to customers — before or after it ceased operations. Class act! It’s ironic to think that a few months ago we walked away from an $80K deal that High Tower lowballed at $20K. The prospect said that even if High Tower’s solution worked for two years, it was worth the risk. I wonder what’ll happen when something goes wrong and they need support or when they have to accommodate a new network device?
We’re seeing similar shakeups from other VC backed competitors.
A recent 451 Group report stated that Q1 Labs is not cash flowing. LogLogic’s CEO said the same thing in an online interview. In addition, LogLogic just had its second reduction in force, which allegedly cut over 30% of their workforce.
I’ve also heard that LogRhythm is trying to raise capital. Bad timing… Securing additional investment in this climate won’t be kind to the current investors.
How long will the VC’s continue to fund companies with products that customers don’t want?
At TriGeo, we continue to do what we’ve always done – apply a simple formula for success. We listen to our customers. Their feedback helps us develop an unrivaled commercial product, provide world-class service and support while being ever mindful to sound business practices. By sticking to this simple formula, TriGeo has enjoyed sustained profitability, revenue growth and continues to be debt free. In fact, we’re forecasting 2009 to be another banner year.
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