Perspectives: Opinions from our network of advisors, investors, operators and analysts on the risks and opportunities they see.
When Sizmek filed Chapter 11 in late March, concerns expressed privately for years by many investors in the ad tech space broke into the open: Sizmek was a Frankenstein’s monster, a dead man walking.
Sizmek’s stroll through the graveyard ended on March 29 when its primary lender, Vector Capital, and the group that owns Vector’s debts, Cerberus Capital, balked at further support and seized control of the company’s bank accounts. The case is pending in the U.S. Bankruptcy Court for the Southern District of New York.
Attention has now turned to how Vector, a VC firm with a long history of productive startups, could have made such a mess of it. What could Vector have been thinking when it paid $122 million for an already struggling Sizmek in 2016, then literally added Rocket Fuel to the pyre?