Mattermark to shut down after selling to FullContact

Mattermark, the location for startup and company information, is motility down its own business once commerce in a very unsatisfactory outcome to FullContact.

In a document obtained by TechCrunch, co-founder and chief operating officer Danielle Morrill wrote that “common stockholders won't be receiving something during this deal.” In different words, Mattermark worker shares square measure valueless.

It was simply last year that Mattermark raised a $7.3 million Series B. Since it absolutely was based in 2012, the business raised over $17 million from high-profile investors like Andreessen Vladimir Horowitz, NEA, five hundred Startups, factory cluster and Asiatic Capital. factory and five hundred Startups are investors in FullContact.

The letter says that “the thought for the acquisition of the corporate failed to clear the preference of most well-liked shareholders.” this suggests that the VCs aren’t essentially obtaining all their a reimbursement, either.

Unfortunately, as Mattermark information can show you, running a startup is hard. We’re told that it absolutely was laborious to persuade individuals to get the business intel in a very competitive landscape that has Crunchbase, PitchBook and CB Insights.

Here’s the text from the letter sent to common shareholders.

“Dear Mattermark Common Shareholders,

I’m reaching resolute share some nice news: Mattermark is being noninheritable  by FullContact! we tend to square measure happy to possess found associate degree exit for our shareholders, and square measure operating laborious to shut this deal instantly. Your assistance is kindly requested to stay an eye fixed out for docs in Doscusign thus we will get your signature these days.

This is a personal stock dealings, and sadly the thought for the acquisition of the corporate failed to clear the preference of most well-liked shareholders thus Common stockholders won't be receiving something during this deal (cash or stock). although this can be not the result we tend to all unreal of after we began this journey nearly half dozen years agone, we tend to square measure super grateful to possess worked with you to arrange the world’s business data and would appreciate your signature thus we will get the bulk of common holder signatures required to shut this deal these days.”

Subsequent pages explained that the deal includes a but $500,000 money thought from FullContact, that “will be accustomed facilitate closure.” There’s additionally a stock dealings, that is presently valued at somewhat on top of $500,000. All in all, FullContact paid but $1 million for Mattermark, however the worth might amendment if FullContact’s share worth grows. As a part of the deal, factory cluster is additionally finance another $500,000 in FullContact at the next valuation, that they're bearing on as a Series C spherical.

While the documents point out the “liquidation of Mattermark,” it additionally says they're going to “continue serving Mattermark customers as a region of FullContact.”

It says that FullContact are transfer six of Mattermark’s workers on board.

Mattermark was based mostly in city. FullContact is in state capital. We’ve reached resolute the businesses for comment.

Danielle Morrill co-founded Mattermark along with her husband Kevin Morrill, WHO served as company CTO. Andy Sparks, was additionally a co-founder and COO. Sparks left the corporate last year.

Danielle antecedently worked at Twilio and represented herself on LinkedIn as its “first worker.” She additionally has been a “scout” for cypress Capital, serving to them realize early-stage startups to take a position in.