Kadoink shuts down mobile services

Customizable text alert creation and sharing solutions provider Kadoink has discontinued its mobile services two weeks after the firm was seized by creditor Hercules Technology Growth Capital for failure to maintain the financial requirements of its $2 million line of credit. The Wall Street Journal reports Kadoink continues its efforts to sell off its assets. According to CEO Scott Cahill, an asset sale would bring in more money than it currently owes Hercules Technology, meaning equity investors could still see some financial return. "The goal is to find a buyer for the assets and hopefully a home for some of the employees," Cahill said, adding that Kadoink has let go 14 of 16 staffers. Kadoink raised $7 million in Series A in November 2007 from Sutter Hill Ventures and angel investors, and previously paid back a portion of its loan from Hercules Technology--the venture debt firm has since reclaimed some of the company's cash to repay that amount.

For more on the Kadoink shutdown:
- read this Wall Street Journal article