According to the investment bank charged with selling Syncapse's assets and intellectual property, the company's collapse can be attributed to its reliance on RIM/Blackberry as a client. As the struggling mobile-phone company reduced its marketing spend, Syncapse was unable to win other clients fast enough, according to the asset sales document.
Syncapse’s revenue was historically heavily concentrated with RIM/Blackberry, which accounted for as much as 89% of the company’s revenue in 2009, but <10% in FY2013. As RIM reduced its marketing spending, due to its own market challenges, Syncapse had to backfill the decline in RIM revenue with other enterprise clients. While top-line revenue growth appears flat and net income performance has been volatile, the Company had underlying, year-over-year growth, ex-RIM, with the addition of major enterprise clients during periods of significant investment in product development.
Online ad network LookSmart acquired Syncapse’s platform and other key assets for $3 million last month.
Separate from the AB InBev gig, Scissons also founded a new VC startup, Grid Ventures, last month and is working with two companies that hope to launch in early 2014.