Mercado: Healthy, Wealthy, Wise. Pick One.
September 27, 2008
The Marker IT Computerworld (Israel) ran an interesting story. It’s tough from my hollow in Kentucky to know if this is 100 percent accurate. I want to alert you that my source is the Hebrew language Web page here. My Hebrew is not much better than my Dutch, but I wanted to pass along the gist of this story by Guy Greeamelnde, “Mercado Israel Fired about 30 Workers”. If the Market IT story is accurate, this is about 25 percent of the firm’s work force. According to the story, Mercado itself may be reeling from the economic down turn that is gaining momentum in the fragmented, fiercely competitive search and content processing sector.
Under the leadership of CEO Kari Leiebu, the company has been growing. Mercado generates somewhere in the $18.0 to $20.0 million per year. Despite the growth in the last two years, customers pay monthly because the firm’s business model is software as a service. Despite the bookings, cash remains a precious commodity. To conserve cash, employees have to go. The company received an infusion of cash bringing to total of as much as $70 million.
Information about Mercado Software is here. You can get Mercado white papers here. As of September 26, 2008, no information about the economic problems afflicting Mercado appears on the company’s Web site. The firm’s investors include the Challenge Fund, Consensus Business Group, Eucalyptus Ventures, Pitango Venture Capital, Star Ventures, and Valley Venture Capital. I will keep my eyes open for confirmation of this store in Marker IT.
For now, Mercado seems to be healthy, wealthy, and wise. Tomorrow. Who knows?
Stephen Arnold, September 27, 2008
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