By 2012 and 2013, online-to-offline analytics had drawn large players like Datalogix and Nielsen, and these parties began to secure deals with the likes of Facebook, Twitter and other big media sellers. Korrelate was not able to ramp up revenue and deals sufficiently to cover costs and grow operations.
The decision was made last fall to find either an acquirer or an investor. Korrelate also tried shifting to a reseller model, but when an acquisition fell through, management abandoned that strategy. Jaye and fellow executives were in talks with possible suitors as recently as Thursday, but a deal failed to materialize.
As of Monday Korrelate has begun notifying customers of its imminent shut down. It has less than ten clients, who will be given a week to remove Korrelate's pixels from their websites. The handful of remaining employees will phase out as well.
"There are conversations going on where people are interested in everybody who is on board currently," Jaye said. He declined to offer more specifics on headcount. According to LinkedIn the company has 10 remaining employees.
It's clearly not the hoped for outcome, but management still believes it can find a home for pieces of its technology, either with a single buyer or split among several.
Korrelate had raised $3 million from Avalon Ventures, along with a $1.5 million debt facility. Jaye gives respect to Avalon. "They have been the best VC you could ask for in terms of giving us the room to run with the business," he said.
And he maintains the company helped prove out the importance of online-to-offline analytics, and doing it on the level with consumers. "We think we raised awareness of the value of the space and also that you don't have to throw privacy out with the bathwater to do this well," Jaye said.