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Summary:

[qi:011] EXCLUSIVE: Mashup maker startup Teqlo has shut down. This less than four months after VC Peter Rip, then of Teqlo investor Leapfrog Ventures, shared the growing pains Teqlo was suffering after realizing that the world didn’t want yet another do-it-yourself application builder. “Over the next […]

[qi:011] EXCLUSIVE: Mashup maker startup Teqlo has shut down. This less than four months after VC Peter Rip, then of Teqlo investor Leapfrog Ventures, shared the growing pains Teqlo was suffering after realizing that the world didn’t want yet another do-it-yourself application builder.

“Over the next few [weeks] [months] the site will begin to molt,” Rip wrote in a blog posting. “We will shed the mashup cocoon and emerge as a very different butterfly.” And what would that butterfly look like? Web-based workflow, according to Rip.

Then-CEO Jeff Nolan moved on during that transition, saying in his blog that: “Teqlo is a fantastic concept and a potentially very disruptive business but it became clear that it needs more time in the oven in order to further develop and, more importantly, package the service.” Nolan eventually surfaced at NewsGator, a maker of enterprise RSS software.

But Teqlo apparently couldn’t make itself over into a different butterfly, though a few months seems a very short period in which to do so. By then Rip moved on to Crosslink Capital.

Teqlo’s demise comes on the heels of VC firm Kleiner Perkins’ declaration that they won’t fund any more web 2.0 startups. But is it another indication that the web 2.0 bubble is slowly leaking air? Maybe, maybe not. Even in the best of times, many companies fail to find a match between what they’ve built and what customers want to buy.

Jacoby Thwaites, founder of Teqlo, has confirmed that the investors had pulled out. Thwaites said, “We had great investors, great people and great technology, but we ran out of time working out what the killer product could be!”

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  1. Kleiner won’t fund any more web 2.0 startups? Wow. That’s a great opportunity for more clueful VCs.

  2. Uday Subbarayan Thursday, November 8, 2007

    Its sad to see a startup folding for 2 reasons:
    [1]failure of someone’s dream
    [2]loss of someone’s $.

    From the beginning, i couldn’t able to understand what is the problem, this company is trying to solve…

    To me, too many pre-announcements before a product gets shipped is a -ve thing for any startup.

  3. Deadpool: Teqlo Finds Out That Mashups Don’t Make Money Thursday, November 8, 2007

    [...] Making my point that it is hard to make money from mashups, investors have pulled the plug on Teqlo. The startup, backed by Peter Rip, was originally focussed on being a widget-based tool for creating mashups, competing with Yahoo Pipes, Dapper, and OpenKapow. Then it tried to morph into a vague “Web-based workflow” company, and lost its CEO. Founder Jacoby Thwaites tells GigaOm: [...]

  4. “We had great investors, great people and great technology, but we ran out of time working out what the killer product could be!”

    Sorry guys, but the company should have never been funded without already having had worked out “what the killer product could be.”

    Have a product first.
    Prove that people want it.
    Prove that people will pay for it.
    ..and then start hiring, raising cash etc.

    Business 101 folks.

  5. ~LOL~ (nervous LOL)…
    So, I guess this is going to make it difficult to go and pitch the website we just launched – http://www.MashupMania.com – a web based Tool Mashup Editor – to investors in the valley :-)
    No, seriously, I think their mistake was to go after the enterprise market – a crowded space when it comes to applications development tools. Our approach is less ambitious and yet more generic: the tool we came up with is meant to be used and usable by the 3 segments we see in this market: the end-user consumer, who simply cares to use a mashup application, those who have the need and skills to assemble basic widgets together to produce mashups that fit their own needs, and finally, the programmer type of user, who can expand the set of widgets by programming their own. The goal is to build a community of some users who create new widgets, some others who assemble these widgets into mashups, and finally those who use them…

  6. Kelly A. Shaw Friday, November 9, 2007

    Teqlo’s problem wasnt’ that they pre-announced. Lots of successful startups do that. Their problem wasn’t that they got funding before they had customers. Real speculative investors are willing to take a chance on these sorts of companies because that’s where the big bucks are.

    Nope, Teqlo’s problem was that they went after the business user with tactics more suited for the consumer world. They didn’t understand the problems faced by ‘business mashers.’ The business masher is less concerned about being cool and more concerned about showing ROI with some killer apps. (See Hinchcliffe’s blog post and my response on this very subject.)

    Sadly, their web-based workflow transformation could have worked. Serena Software is taking a similar approach with some success. The business doesn’t just need cool mashups, they need the mashed data in the context of a business activity to support decisions and actions. Teqlo simply didn’t have time to figure out how to make it work.

    Kelly A. Shaw, Ph.D.
    Analyst
    Serena Software

  7. Web 2.0 Manages to Sober Up « GigaOM Friday, November 9, 2007

    [...] But I’ve seen signs of sobriety recently. Kleiner Perkins has said no more Web 2.0 startups. Teqlo shut down abruptly once investors were no longer willing to fund their continued search for a workable strategy. [...]

  8. There is no Web 2.0 Bubble Friday, November 9, 2007

    [...] The Internet market has matured remarkably since 2000, and even though there are failures, such as Teqlo – which recently announced it was shutting down – this is no different from other industries out [...]

  9. Sounds like Foolish investors loosing cash

  10. Deadpool: Teqlo Finds Out That Mashups Don’t Make Money | Sharecountry Tuesday, November 13, 2007

    [...] Making my point that it is hard to make money from mashups, investors have pulled the plug on Teqlo. The startup, backed by Peter Rip, originally focussed on being a widget-based tool for creating mashups, competing with Yahoo Pipes, Dapper, and OpenKapow. Then it tried to morph into a vague “Web-based workflow” company, and lost its CEO. Founder Jacoby Thwaites tells GigaOm: [...]

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