In a document obtained by TechCrunch, co-founder and CEO Danielle Morrill wrote that “common stockholders will not be receiving anything in this deal.” In other words, Mattermark employee shares are worthless.
It was just last year that Mattermark raised a $7.3 million Series B. Since it was founded in 2012, the business raised over $17 million from high-profile investors like Andreessen Horowitz, NEA, 500 Startups, Foundry Group and Sherpa Capital. Foundry and 500 Startups are also investors in FullContact.
The letter says that “the consideration for the purchase of the company did not clear the preference of preferred shareholders.” This means that the VCs aren’t necessarily getting all their money back, either.
Unfortunately, as Mattermark data will show you, running a startup is tough. We’re told that it was hard to convince people to pay for the business intel in a competitive landscape that includes Crunchbase, PitchBook and CB Insights.
Here’s the text from the letter sent to common shareholders.
“Dear Mattermark Common Shareholders,
I’m reaching out to share some great news: Mattermark is being acquired by FullContact! We are happy to have found an exit for…