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Posts Tagged ‘wages-or-other’

Bad news for Portland-based Open-ID startup Vidoop (as well as Vidoop partners like AOL, MySpace and Flock): it’s apparently out of business. Earlier this month the company announced layoffs, but based on an email string that was forwarded to us, the company is now out of “officially out of business” and winding down.

From CEO Joel Norvell to Vidoop insiders, where he says that the company has no funds to pay wages or other liabilities, and that employees are being offered computers in lieu of wages:

Vidoopsters:

I am currently working with our counsel on next steps, but here is
what I know:

Vidoop LLC is officially out of business. Unfortunately, there are no
funds to pay the unpaid wages or other liabilities. I don’t yet know
if this means there will be a bankruptcy filing. However, we are in
the process of winding down and vacating the office.

Tomorrow and Friday we will be offering certain equipment such as
laptops and desktop computers to employees in lieu of a certain amount
of wages owed. As an example, a laptop might be worth $1000 in back
wages. You would only need to pay taxes on the actual book value of
the asset, which might be $250. So you would write a check for $0.153
on $250, or $38.25. The company’s liability to you would be reduced by
$1000, and you would have a laptop for $38.25.

The investors who walked out of the May 5 deal created a situation
that made an orderly shutdown impossible. However, several of us have
worked nonstop to preserve everyone’s stake in Vidoop, and efforts are
ongoing. We hope to provide details soon.

Thanks to everyone who is volunteering their time to help shut down
the office. There is simply no roadmap for a situation like this, and
I know it is frustrating. Your support during this difficult period
is very much appreciated.

Joel

It’s not clear how long the Vidoop service will remain active. The company promised “plenty of warning” of a shutdown of MyVidoop on May 14, but since then have been silent. There’s a ton of speculation in the email string (we aren’t posting most of it), but we’ll wait for an official company announcement. There’s also likely an interesting backstory around that “investors who walked out of the May 5 deal” statement.

We’ve put Vidoop in the deadpool.

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Life is not easy for search engine startups. FIrst, it’s hard to create something that doesn’t fall flat against Google. Too much hype (Google Killer!), whether the company drives it or not, inevitably leads to disappointment.

Cuil is walking dead, for example, and Wikia Search is just dead. Other ambitious projects like SearchMe are dealing with tepid user enthusiasm, and Wolfram Alpha’s over-hype has cost it credibility.

Any search engine startup with a shred of common sense wouldn’t want to create a lot of hype about itself before launching. There are too many dead bodies lying around to prove how badly that strategy works.

But on the other hand: ambitious startups need to hire talented engineers, and they need lots of money. Crawling and indexing the web is expensive and requires thousands of servers. Those servers aren’t free. So there needs to be at least a little awareness of the startup out there for hiring and fundraising purposes.

New search engine startup Blekko has been trying to figure out exactly where pre-launch press should begin and end. They’ve said very little up to now and haven’t made any big promises at all. We first covered them in early 2008, and have subsequently noted some high profile investors that have put money into the project.

But that’s it. The company has said clearly that they don’t want press, and most bloggers and other journalists have respected that. Not only that, all their website has on it is a cute paper bag puppet. No ridiculous promises of anything at all. We had to beg them just to get a logo (the puppet looked absurd as their logo in CrunchBase).

So why the slight buzz yesterday and today? They’re preparing to launch later this year and they are raising more money to ramp up. They’re starting to show people a little more of the product. We’re impressed. As are others.

Is Blekko a Google killer? I don’t think so. And the company isn’t claiming that, either. But I do think they have a really cool search product that a lot of people are going to love. I look forward to writing about it when they prepare to launch.

But until then we’re going to give them the privacy they’ve requested to fully bake the product. Because the last thing we need is another over-hyped pre-launch search engine that’s called a failure just because they aren’t a Google slayer a week after launch.

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