Sophoi Inc. once appeared to be a promising L.A. startup. Its software helped companies track use of their intellectual property, and was being snapped up by big-name entertainment firms. Now, Sophoi is bankrupt and its remnants have been bought by software giant Oracle Corp.
Oracle acquired Sophoi on Oct. 12 for about $1.2 million, according to court documents. Oracle also assumed some of Sophoi’s debt, which totaled about $1.4 million.
It’s unclear what will happen to Sophoi’s 11 remaining employees. Chief Executive Satinder Raina did not respond to a request for comment, and a spokeswoman for Oracle declined to comment.
Sophoi, which was based in downtown Los Angeles, made software that allowed its clients – mostly in the entertainment industry – to track use of their licenses and the revenue they generated.
The company got out of the gate quickly, signing up clients such as DreamWorks Animation SKG Inc. and Paramount Pictures Corp., and opening up a subsidiary in the United Kingdom.
Sophoi’s success attracted the attention of Redwood City-based Oracle in May 2007, when Oracle invested in the startup, reportedly for about $17.5 million.
But the declining economy dried up demand for Sophoi’s services and the company was unable to pay off about $835,000 owed to two of its main creditors, according to court documents. By the time Sophoi filed for bankruptcy, it had also closed down its U.K. subsidiary and was left with $267,000 in cash on hand.
Sophoi isn’t the only L.A.-area startup to run out of fuel amid the recession. Pasadena-based Desktop Factory Inc., a promising startup that was manufacturing 3-D printers, announced this summer that it had run out of cash and was acquired by 3D Systems Corp. of Rock Hill, S.C., for an undisclosed price.
Borrowing Business
Let’s say you need a power drill or hedge trimmer, but you don’t have one in the house.
Now, a new L.A.-area startup has a solution. The company, NeighborGoods.net, is an online social network site built around the concept of borrowing things from your circle of friends – or even neighbors you barely know.
The site, which launched Oct. 7 and has more than 1,000 users, works like this: Members list on their profile an inventory of goods they own and would be willing to let others borrow or rent for a fee, such as bikes, toaster ovens, vacuum cleaners, even cars. Other members can then pick items they want to borrow. The two parties agree on terms, including length of time and any rental cost. They then meet in-person to exchange the item.
NeighborGoods users can borrow from and lend items to anyone else registered with the site, whether they know them or not. But ideally users end up lending things to people they know so that they trust the person they’re interacting with, said Micki Krimmel, the company’s founder, chief executive and sole permanent employee.
“This is primarily about interacting with your neighbors and friends, and getting more value out of stuff that’s collecting dust in your closet,” Krimmel said.
The site also has security measures to protect users from fraudulent borrowing. New members have to register a physical mailing address with the site and wait to receive a letter with a security code. That confirms they actually live in the area.
If a borrower breaks the terms of a deal, the owner of the item can hit a “panic button” on the site that alerts NeighborGoods to issue a reminder to the borrower. It also posts an alert above the borrower’s profile to inform others of the problem.
The site has $100,000 in funding from Craig Garner, CEO of Coast Plaza Hospital in Norwalk. Krimmel plans to make money by eventually offering additional services for premium members, and by forming partnerships with local businesses that rent out equipment and other items.
Money for Sometrics
Sometrics Inc., a startup that helps Internet companies get the highest and best use out of their Web traffic, recently raised $4 million in venture funding.
The downtown L.A.-based company primarily targets social networking Web sites and companies that build applications for sites such as MySpace and Facebook. Sometrics analyzes Internet use of these sites and applications, and helps place ads.
The latest fundraising round was lead by Burbank-based Steamboat Ventures LLC, the investment arm of the Walt Disney Co.
Staff reporter Charles Proctor can be reached at [email protected] or (323) 549-5225 ext. 230.
