Monitor110, the New York-based data- and information-gathering service funded by DFJ, DFJ Gotham, and Acadia, closed its doors yesterday. In a memo posted on the company’s site, CEO Brennan Carley says the firm had begun a new investment round in May but was unable to get secure funding “during one of the most challenging quarters in recent history for VC investments.”
The company had raised $20 million, including an $11 million round in 2006. Last month, we reported that the company had cut a third of its staff and was trying to sell itself to Reuters. Carley subsequently told The Deal that he was looking at several options: “So while we have been looking for investment and distribution, we are open (given the right terms) to an outright sale of the company as well, and several parties have expressed that kind of interest.”
Full memo from Carley follows:
Clients, employees, and investors:
I regret to inform you that, effective July 15, Monitor110 has decided to cease operations and shut down the business.
Monitor110 successfully built a service that allows investors to monitor internet sources for information and insight that is relevant to their portfolio and investment thesis.
The company launched a web based service (“Portal”) in March of this year, and a research report service (“Alphadesk”) in April, and signed up over 100 trial clients at over 60 firms including hedge funds, traditional asset managers, and investment banks.
The feedback from those clients has been positive, and since March the company launched 3 releases, each incorporating ideas and requests from our trial users.
We began to raise our next round of funding in May, during one of the most challenging quarters in recent history for VC investments, and despite the progress we have made operationally, we have been unable to secure funding.
As a result, the company has decided to cease operations.
Thank you to our customers for their support, and to our staff for their hard work and contributions in a very difficult market.
W. Brennan Carley, CEO