Seattle software maker Varolii, which makes tools that help businesses communicate over multiple channels—voice, SMS, Web, fax, pager, e-mail—said on Friday it would not proceed with its IPO plans “due to the difficult market conditions for initial public offerings.”
The offering, which was expected to raise up to $86 million, affects both Seattle and the Boston area, home to Varolii’s Business Continuity Division (formed from EnvoyWorldWide, which Varolii bought in December 2005). Varolii was founded in 2000 by MIT grads Scott Sikora and Michael Ho as AlertOnline. It was later renamed PAR3 Communications, and the moniker was changed again last year to Varolii (chosen to reflect the Pons Varolii, a neural pathway in the brain, and no doubt make you think management is smart). The company claimed $68 million in revenues in 2007.
Investors, as the Seattle Post-Intelligencer‘s John Cook pointed out, include BlueRun Ventures, Draper Fisher Jurvetson and InterWest Partners. All are California-based. But the IPO cancellation is also a setback for Boston-area venture firm Longworth Venture Partners. Longworth was an investor in EnvoyWorldWide. As Longworth partner Jim Savage blogged last year, “We are very pleased to announce that Varolii has filed for its IPO…Varolii acquired Envoy and we received Varolii stock.”
Author: Robert Buderi
Bob is Xconomy's founder and chairman. He is one of the country's foremost journalists covering business and technology. As a noted author and magazine editor, he is a sought-after commentator on innovation and global competitiveness. Before taking his most recent position as a research fellow in MIT's Center for International Studies, Bob served as Editor in Chief of MIT's Technology Review, then a 10-times-a-year publication with a circulation of 315,000. Bob led the magazine to numerous editorial and design awards and oversaw its expansion into three foreign editions, electronic newsletters, and highly successful conferences. As BusinessWeek's technology editor, he shared in the 1992 National Magazine Award for The Quality Imperative.
Bob is the author of four books about technology and innovation. Naval Innovation for the 21st Century (2013) is a post-Cold War account of the Office of Naval Research. Guanxi (2006) focuses on Microsoft's Beijing research lab as a metaphor for global competitiveness. Engines of Tomorrow (2000) describes the evolution of corporate research. The Invention That Changed the World (1996) covered a secret lab at MIT during WWII. Bob served on the Council on Competitiveness-sponsored National Innovation Initiative and is an advisor to the Draper Prize Nominating Committee. He has been a regular guest of CNBC's Strategy Session and has spoken about innovation at many venues, including the Business Council, Amazon, eBay, Google, IBM, and Microsoft.
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