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Tagyu’s been shut down for now.

It was a good run, and the technology has some exciting implications. But in the end, information retrieval is expensive—the server power required is enormous. Although Tagyu was bringing in enough revenue to cover costs, it didn’t afford any room for growth.

Tagyu was never really a consumer play—the target market was companies that need classification services. The process of managing the technology, looking for funding, and working on sales turned out to be too much for a single entrepreneur to manage. Lesson learned: for a enterprise software startup, you need multiple founders or the funding to hire some help.

I have something else in development—something I’m very excited about. More on that in a day or so.

Ben Tremblay
August 16, 2006 1:17 PM

Shut down ... meh. Funny, I was going through my set of VC blogs (yes, again!) and ... dunno, I feel boxed in. I've argued for a long time (since before Moz) that there was a big gap between angels (conventional funding, VCs included) and OpenSource ... I seem to live in that gap. What you wrote about "covering costs but not allowing for growth" points right at the nut of it. all the best ben

Ian Fenn
August 17, 2006 3:38 AM

Sorry to hear the news, but I look forward to the new stuff coming up. All the best, Ian

This discussion has been closed.

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