[net.rumor] The fall of a startup

marc@haddock.UUCP (01/29/86)

WHO:    Metagraphics, inc.

WHERE:  30 Commerce Way
        Woburn, MA
        (617) 935-6380

BACKGROUND:
    This company, a startup firm founded early in '83, was to design,
    develope and support a "Drawing conversion system" based on an
    intelligent database which accurately represented a mechanical part
    according to its notational dimensions.

    The employees of the company took a 2.5 year period to complete the
    first shipable version of what has been eventually called the M4200.
    Durring this time, the majority of the staff and the work laid in
    the hands of the engineering groups which represented more then half
    of the company during the developement cycle.

WHAT:
    As in any startup company, the critical stage is the time period of
    about 6 to 12 months between preliminary development and initial
    marketing. Metagraphics is now just getting to the end of this critical
    stage. Durring this stage some interresting events have occured...

    With venture capital due to run out in 12/85, the board of directors
    made the decision that a layoff was necessary (after all, everybody
    else was doing it!) and cut 25% of it's engineering staff. This took
    place in 10/85 and was said that by doing so would allow the remaining
    money take them into early '86.

    A few days prior to the layoff, one of the engineers left for another
    small company in the Waltham area (he noticed the writing on the walls).
    Soon after the layoff, 2 more engineers left for greener pastures
    leaving only 50% of the staff. The most recent developments? Yesterday,
    1/28/86, the VP of engineering resigned. A few weeks ago, the president
    was removed from his position, and in 2 to 3 weeks all of the people
    remaining in the systems/graphics group will have left.

THE RESULTS:
    Below is a list of the engineering staff and their current status:

    Larry Gozard,       VP engineering,               XRC

    Dr. Robin Hillyard, MGR databases/rectification,  Metagraphics
      Bob Congdon,      database,                     Cognition
      Russ Holden,      database,                     Polygen
      Dr. Julian Cole,  rectification,                (Not Working)
      Peirung Lu,       rectification,                Metagraphics
      Tom Morrow,       rectification,                Metagraphics

    Jim Taggart,        MGR systems/graphics,         (Soon to be announced)
      Bill Clements,    graphics,                     (Soon to be announced)
      Dr. Eric Berger,  character recognition,        (On Wall Street)
      Brian Kimmerer,   user interfaces,              Contrex
      Marc Evans,       hardware interfaces,          Interactive Systems

    Jim Newcomb,        MGR dimensioning/translators, Metagraphics
      Dick Field,       CV database translator,       Metagraphics (looking)
      Rick Difronzo,    IGES database translator,     Metagraphics
      Borris Tanembaum, IGES database translator,     Metagraphics (looking)
      Reza Rasogi,      IGES/CV database translator,  Telesis
      Ed Weed,          dimensioning,                 Imaging Technologies
      Raj Tolani,       dimensioning,                 Metagraphics (looking)
      Ajay Argawald,    dimensioning,                 Metagraphics

I would guess that the bottom line here is that the company will probably
not make it, although the technology will probably be bought by somebody. It
should be interresting to see what the future will bring for this company
the S. Klein Newsletter once wrote up as "A collection of people which reads
like a list of Who's Who in computer graphics."

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Marc Evans, WB1GRH        | Usual disclaimers, character graphic pictures and
Interactive Systems Corp. | whatever else might creep into this portion of a
Boston, MA                | signiture...
(617) 247-1155            |
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