Friday, July 17, 2009

Spinvox

Some interesting news on Spinvox, a company who's MWC stand design I have always rated as top notch - after $100m funding, with 250 employees, they appear to be struggling to pay salaries. Instead, they seem to be offering employees share options instead of salaries - I am in all in favour of offering share options on top of wages, but instead? Can you eat options somehow?

More worrying is the suggestion that the more big deals they get (having already got some huge ones with Telefonica), the more funding they need - which makes their voice recognition technlogy sound a little unscalable... read the comments and find out why: almost all of the recognition is done by humans, hence the need for such a headcount and lack of scalability / chance of profitability.

Big confidence trick on the VCs? That seems a little harsh, but you have to question why they rate themselves so highly :)

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27 Comments:

Anonymous Helen said...

It is not only not being able to pay salaries that's the problem now, but it seems like the company is doomed as it recently emerge that there have been financial irregularities with senior executives.

See here http://www.jroller.com/evans/entry/spinvox_is_dead

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Salary is the primary need of a employee. A employee tries another company because of the good salary offers by the new companies.

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