Chemdex Corporation, later known as Ventro Corporation and then NexPrise, Inc., was a B2B e-commerce company that first operated an online marketplace for products related to the life sciences industry such as laboratory chemicals, enzymes, and equipment, but later expanded into a few other industries.[2] It was notable for its $7 billion market capitalization during the dot-com bubble despite minimal revenues.
 | |
| Founded | September 1997 |
|---|---|
| Founder | David Perry |
| Defunct | April 12, 2011 |
| Fate | Bankruptcy; acquired by Trubiquity |
| Headquarters | Carlsbad, California |
| Revenue |  $3 million (2003) |
| -$14 million (2003) | |
| Total assets |  $7 million (2003) |
| Total equity | -$7 million (2003) |
Number of employees | 33 (2003) |
| Footnotes / references [1] | |
History
editThe company was founded in September 1997 by David Perry, a mid-level oil refinery manager at Exxon whose business plan won 2nd place in a Harvard University competition.[3][4]
In October 1998, the company launched its service.[4]
The company raised $45 million in venture capital funding from Genentech founder Robert A. Swanson, Kleiner Perkins Caufield & Byers, and CMGI.[4]
On July 27, 1999, the company became a public company via an initial public offering that raised $112.5 million. After its shares soared 60% to $25 per share on its first day of trading, the company had a market capitalization of $758 million despite only having $29,000 in sales in 1998 and $165,000 in sales in the first quarter of 1999, 82% of which came from Genentech.[5][3][6]
In September 1999, the company acquired Promedix.com for $340 million in stock. In December 1999, the company acquired SpecialityMD.com for $115 million in stock and formed a joint venture with Tenet Healthcare.[7] The stock price surged to over $100.[8]
In February 2000, the company changed its name to Ventro Corporation.[1] News of the name change sent the stock up 30% in one day, to $155 per share.[9]
On February 25, 2000, the stock price peaked at $243 per share.
In December 2000, the company shut its Chemdex and Promedix marketplaces and laid off 235 employees.[10]
By June 2001, shares in the company traded for 39 cents each.[4]
On August 9, 2001, the company acquired NexPrise and in January 2002, the company changed its name to NexPrise, Inc.[1]
On February 4, 2002, the company acquired InfoPrise.[1]
In June 2002, the company announced the release of the nProcess Platform.[1]
The company changed its business plan to be a provider of cloud-based enterprise content management solutions.
On January 18, 2011, the company filed bankruptcy.
In April 2011, Trubiquity acquired all of the company's assets.[11]
References
edit- ^ a b c d e "Nexprise, Inc. 2003 Form 10-K Annual Report". U.S. Securities and Exchange Commission.
- ^ "Chemdex raises $112.5 million in IPO". CNET. July 27, 1999.
- ^ a b "Chemdex Corp Form S-1". U.S. Securities and Exchange Commission.
- ^ a b c d PILLER, CHARLES (June 24, 2001). "Fatal Flaw Dooms an Internet Venture". Los Angeles Times.
- ^ "Chemdex shines on market debut". CNET. July 27, 1999.
- ^ Thurm, Scott (July 28, 1999). "Chemdex Shares Surge 70% From Their Offering Price". The Wall Street Journal.
- ^ Malik, Om (December 13, 1999). "Chemdex shifts gears". Forbes.
- ^ "Tenet, Chemdex venture". CNN. December 13, 1999.
- ^ "Semis brighten dark session". CNN. February 22, 2000.
- ^ "VENTRO SHUTS CHEMDEX, PROMEDIX E-MARKETS". Advertising Age. December 7, 2000.
- ^ "Trubiquity Acquires Enterprise Content Management Solution from NexPrise" (Press release). Vocus (software). April 12, 2011. Archived from the original on April 16, 2011.