Creditors seize Kadoink, strategic buyer sought

Customizable text alert creation and sharing service provider Kadoink has been seized by creditors Hercules Technology Growth Capital after the startup failed to maintain the financial requirements of its $2.5 million line of credit. Kadoink CEO Scott Cahill tells TechCrunch that the firm will return a "substantial amount of cash" to Hercules, and that it will seek a strategic buyer to keep the service alive. Kadoink previously announced $5 million in funding from Hill Ventures, although TechCrunch notes rumors that the company may have raised as much as $14 million in total capital. Kadoink's services enable the insertion of brand and direct-response messages into free text alerts from friends, fans, artists and content providers.

For more on Kadoink's woes:
- read this TechCrunch article