Mattermark, the positioning for startup and firm information, is shutting down its personal enterprise after promoting in a disappointing final result to FullContact.
In a doc obtained by TechCrunch, co-founder and CEO Danielle Morrill wrote that “widespread stockholders is not going to be receiving something on this deal.” In different phrases, Mattermark worker shares are nugatory.
It was simply final yr that Mattermark raised a $7.three million Sequence B. Because it was based in 2012, the enterprise raised over $17 million from high-profile buyers like Andreessen Horowitz, NEA, 500 Startups, Foundry Group and Sherpa Capital. Foundry and 500 Startups are additionally buyers in FullContact.
The letter says that “the consideration for the acquisition of the corporate didn’t clear the choice of most popular shareholders.” Because of this the VCs aren’t essentially getting all their a reimbursement, both.
Sadly, as Mattermark information will present you, working a startup is hard. We’re instructed that it was laborious to persuade folks to pay for the enterprise intel in a aggressive panorama that features Crunchbase, PitchBook and CB Insights.
Right here’s the textual content from the letter despatched to widespread shareholders.
“Expensive Mattermark Frequent Shareholders,
I’m reaching out to share some nice information: Mattermark is being acquired by FullContact! We’re glad to have discovered an exit for our shareholders, and are working laborious to shut this deal instantly. Your assistance is kindly requested to maintain an eye fixed out for docs in Doscusign so we are able to get your signature in the present day.
It is a non-public inventory transaction, and sadly the consideration for the acquisition of the corporate didn’t clear the choice of Most popular shareholders so Frequent stockholders is not going to be receiving something on this deal (money or inventory). Although this isn’t the result all of us dreamed of once we launched into this journey almost 6 years in the past, we’re tremendous grateful to have labored with you to prepare the world’s enterprise info and would respect your signature so we are able to get the vast majority of widespread holder signatures wanted to shut this deal in the present day.”
Subsequent pages defined that the deal features a lower than $500,000 money consideration from FullContact, which “can be used to facilitate shutdown.” There’s additionally a inventory transaction, which is presently valued at somewhat above $500,000. All in all, FullContact paid lower than $1 million for Mattermark, however the worth might change if FullContact’s share worth grows. As a part of the deal, Foundry Group can also be investing one other $500,000 in FullContact at a better valuation, which they’re referring to as a Sequence C spherical.
Whereas the paperwork speak in regards to the “liquidation of Mattermark,” it additionally says they may “proceed serving Mattermark prospects as part of FullContact.”
It says that FullContact can be bringing six of Mattermark’s staff on board.
Mattermark was based mostly in San Francisco. FullContact is in Denver. We’ve reached out to the businesses for remark.
Danielle Morrill co-founded Mattermark together with her husband Kevin Morrill, who served as firm CTO. Andy Sparks, was additionally a co-founder and COO. Sparks left the corporate final yr.
Danielle beforehand labored at Twilio and described herself on LinkedIn as its “first worker.” She additionally has been a “scout” for Sequoia Capital, serving to them discover early-stage startups to spend money on.