The Story Behind Productopia's Disappearance
from the and-just-like-that,-it's-gone dept
I've heard about six different stories from different people on all different sides of the Productopia shut down. Now, here's the official report from the New York Times on just what happened to Productopia. The summary is that they were moving forward with every expectation that things would be fine, when their VCs realized that, at best, this was a small profit business. Thus, the VCs pulled out, and suddenly the company realized that they had no money, a ton of expensive employees and a site that most people considered not particularly good. Of course, no one explained exactly why the VCs invested in this business in the first place, if it only took a few months for them to realize the profits would never be that impressive, but VCs never seem to want to talk about those things.
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