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Thursday, May 28, 2009

Did the Cloud Rain on SiCortex?

SiCortex, a six-year-old startup building energy-efficient supercomputers in Maynard, MA, has shut its doors. The company ran out of working capital and was unable to raise more from its venture investors, according to a report that surfaced yesterday in HPC Wire, a trade publication in the high-performance computing industry.

Xconomy obtained confirmation of the shutdown news from John Mucci, the founding CEO of SiCortex, who was replaced 10 months ago by current CEO Christopher Stone. Stone himself was not immediately available for comment.

“It is a sad day for all… less competition, unemployed seventy some workers…” Mucci said in an e-mail.

SiCortex had raised $42 million in venture capital, including a $21 million Series A round in 2004 contributed by lead investor Polaris Venture Partners and syndicate members Flagship Ventures, JK&B Capital, and Prism Venture Partners. All of those investors returned for the company’s $21 million Series B round in 2006, with the addition of new lead investor Chevron Technology Ventures. Bob Metcalfe, a Polaris partner frequently quoted about SiCortex in the past, said this morning he had no comment about the shutdown.

According to the HPC Wire report, which was based on information from an anonymous source close to the company, most of the company’s employees have been let go, and a sale of the company’s assets is underway.

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