It pays to be venture funded: MyThings acquires Israeli start up ViewScore for an undisclosed sum, estimated at a few hundred thousand dollars, TheMarker reports. ViewScore has been struggling to raise funding in the past few months. MyThings recently raised a second round of $5 million.
The two companies have a clear synergy: ViewScore is positioned in the PreSale market, helping users get UGC recommendations for consumer electronic products. ViewScore has developed a crawler that aggregates user reviews and generates a total quality score. MyThings is the Post Sale segment, helping merchants stay connected with buyers by providing support, documentation, etc. ViewScore’s three employees will move to MyThings when the deal is completed. Source: The Marker
ViewScore’s PR firm conatcted me with an update on the rational behind the deal. Here’s part of the email:
I wanted to reach out to you today regarding your post about ViewScore’s acquisition. I Have worked with ViewScore since 2006, and I wanted to make you aware of the following.
The company was indeed in negotiations to raise money in recent months with several interested parties, but when the MyThings opportunity came, they decided it was a better opportunity. Why?
1. The fact that all ViewScore employees (except for the CEO) are now employed at MyThings
2. The market conditions for ViewScore’s competitors
This was by no means a fire sale, especially considering the company’s low burn rate and initial revenues. Instead, it was an opportunity to migrate from ViewScore 1.0 to 2.0 so that the intellectual property and concept can thrive.
Thanks for the update and good PR work!
Latest posts by Eze Vidra (see all)
- Emerging Machine Intelligence Clusters - March 2, 2017
- 30 Machine Intelligence Startups to Watch in Israel - February 15, 2017
- Five Books I Want to Read in 2017 - January 16, 2017