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Ennovate Shuts Down

Light Reading
News Analysis
Light Reading
10/24/2001

Ennovate Networks closed it doors on Tuesday afternoon and laid off its remaining 127 employees, according to Ian Mashiter, the company's founder and senior vice president of strategic marketing.

The multiservice edge-switch maker was unable to raise the money it needed to stay in business, due to the economic recession, Mashiter says. It had employed some 220 people as of February.

Ennovate's only announced customer to date was PSInet Inc. (Nasdaq: PSIX), the Internet provider that filed for Chapter 11 bankruptcy protection this summer. The company was in trials with several large carriers, Mashiter says, but couldn't secure the funding to turn those tryouts into commercial sales.

Lehman Brothers Venture Capital Group, Kohlberg Kravis Roberts & Co., PSI Ventures, Tudor Investment Corp., Enron Ventures, Sprout Group, Pequot Capital Management Inc., Marquette Venture Partners, Spectrum Equity Investors, Toshiba Corp., Mitsui Corp., and Alcatel Ventures were among the investors that pumped some $90 million into the company during its four years in business.

Mashiter; John Glazik, Ennovate's CEO and chairman; Bart Shigemura, Alidian Networks Inc.'s CEO; Marty Schoffstall, PSInet's cofounder; Akira Bannai, a Toshiba executive; Jeffrey Feldman, CEO of Everest Broadband Networks; and Steve Diamond, a general partner at the Sprout Group, sit on Ennovate's board.

Ennovate's directors are in the process of appointing a trustee to handle the company's assets. Mashiter says the company will file for Chapter 7 bankruptcy protection within the next week.

- Phil Harvey, Senior Editor, Light Reading
http://www.lightreading.com

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lu-alum
lu-alum
12/4/2012 | 7:41:03 PM
re: Ennovate Shuts Down
There are plenty of jobs....if you're a bankruptcy attorney or an auctioneer.
rfennis
rfennis
12/4/2012 | 7:41:03 PM
re: Ennovate Shuts Down
Will the hiring managers that are really hiring please stand up!!!
netskeptic
netskeptic
12/4/2012 | 7:41:01 PM
re: Ennovate Shuts Down
> companies failing on the business side

As far as I understand Ennovate's failure is not related to the sales/business development side of the house.

Thanks,

Netskeptic
rfennis
rfennis
12/4/2012 | 7:41:01 PM
re: Ennovate Shuts Down
A career change, interesting.
I'm so sick of #@@#[email protected]# companies failing on the business side, o.k. recently economics may have something to do with some, meanwhile my resume
is starting to look like a piece of swiss chesse.
because of the MTBF of businesses, and no I have not been contracting...

I think it's time to start a union of engineers for engineers by engineers, engineersRus!
Collaborate with everyone.
Have everyone walk!!
Now, what can we do for you today,
And by the way, now that you have pissed me off
It's going to cost you five times as much.
PantomineHorse
PantomineHorse
12/4/2012 | 7:41:00 PM
re: Ennovate Shuts Down
"I think it's time to start a union of engineers for engineers by engineers, engineersRus!
Collaborate with everyone.
Have everyone walk!!
Now, what can we do for you today,
And by the way, now that you have pissed me off
It's going to cost you five times as much."

Correct thinking. If you can hold on (not change careers), let the weak-hands walk, diminish the supply -- when demand picks up (whenever), you can name your price.

Just be sure not to ask for your wages in USD$ (futures), since by that time these will become seriously deflated. (One financial firm yesterday told its EEs to expect inflation to fan next year).

In the meantime, collaborate, do something constructive, invent, study up, take a risk here & there on a venture.

This can be applied to any industry. Just look at the reported numbers today by nearly a dozen companies.
rfennis
rfennis
12/4/2012 | 7:41:00 PM
re: Ennovate Shuts Down
They failed to get "Money".
lu-alum
lu-alum
12/4/2012 | 7:40:59 PM
re: Ennovate Shuts Down
They failed to get "Money".

Actually they failed to build an MPLS switch, then a VPN router, then a Frame Relay switch, then and MPLS switch again. Would you give em money?
lu-alum
lu-alum
12/4/2012 | 7:40:59 PM
re: Ennovate Shuts Down
rfennis-- "I'm so sick of #@@#[email protected]# companies failing on the business side"

Let's not be hastey, as I understand it the engineering team at Ennovate was not exactly the Harlem Globetrotters. More like the Washington Generals.
lucender
lucender
12/4/2012 | 7:40:59 PM
re: Ennovate Shuts Down
I know people who were there. There were multiple simultaneous failures leading to the eventual demise.
straight shooter
straight shooter
12/4/2012 | 7:40:57 PM
re: Ennovate Shuts Down
rfennis wrote:

"I think it's time to start a union of engineers for engineers by engineers, engineersRus!
Collaborate with everyone.
Have everyone walk!!
Now, what can we do for you today,
And by the way, now that you have pissed me off
It's going to cost you five times as much."

Sounds like John Galt in "Atlas Shrugged".

BTW, Galt's statement/action came just before society cratered due to its own incompetence...
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