The assets of KidoZen will be sold to Tampa-based Mad Mobile on Monday.
Terms of the transaction for the once-ballyhooed Miami tech company were not included on Crunchbase but the South Florida Business Journal reported the price at a paltry $150,000 according to Miami-Dade County records, the result of a court-ordered process to satisfy creditors.
The now-closed enterprise mobile application platform company was once lauded by many as a Miami tech success story in the making, and attracted $5 million in Series A funding from Third Point Ventures in 2013. But this spring Third Point quietly replaced the founder and CEO, Jesus Rodriguez, and laid off many of the employees. In August, The Information revealed why: Third Point alleged that KidoZen had provided fraudulent financial information. In a report in the Miami Herald in February of 2014, Rodriguez said KidoZen served nearly 80 of the world's largest companies, booked nearly $5 million in revenue in 2013 and had 30 employees.
In December 2013, Rodriguez was named one of the first two Endeavor Entrepreneurs out of Miami, what is usually a lifetime honor, but was quietly dropped from the global nonprofit’s network of Endeavor Entrepreneurs this summer.
As The Information's Reed Albergotti said in his report, the KidoZen debacle serves as a cautionary tale for investors who are feeling pressure to find under-the-radar opportunities and close deals quickly in the hyper-competitive venture market.
-- Nancy Dahlberg, @ndahlberg