Salorix failure

Salorix

Online social network engagement platform

Description

Salorix was a Bangalore-based agency that offered an online networking engagement platform for brands. Through Amplify, as the AI based service was called, brands could “listen in” on ongoing social discussions which would be ranked to distinguish the most relevant key themes and influencers over different businesses for their clients. Solarix was considered to have a cutting-edge product and even received twice acquisition offers from Google in 2012 and 2013.

Stats

Category
Analytics
Country
United States
Started in
2009
Closed in
2014
Number of Founders
1
Name of Founders
Santanu Bhattacharya
Number of Employees
11-50
Number of Funding Rounds
2
Total Funding Amount
$3.5M
Number of Investors
2

Cause of Failure

Salorix closed down in because of inability to raise reserves after its major investors stopped supporting it. This was following a disagreement between the founder and investors over securing an offer from Google. The investors were excited about the Google offer and saw it as a good business opportunity while the Salorix founder was not awed with it.

Rumors have it that Salorix CEO asked for a higher price but Google refused and the deal didn’t go through. Soon after it was clear that the founder would not listen to their wishes and advice, investors put a stop to any additional financial support (after having initially backed up the startup with $3.5 million in Series A investment). Salorix was not able to sum enough capital elsewhere and shut down in 2014.

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