Although there are startups who are doing well and growing in Montréal, like Akoha, Standoutjobs, or Mobivox, there have been numerous worrying reports about Capazoo, which was officially launched last October. People are calling the founders scum bagss, another MTW reader said they were dishonest with their employees, and I was told they were downsizing this week 50 out of their 60-strong development team, which makes them the black sheep of Montréal startups.

Of course, these might just be rumors, but they might be also signs about capazoo’s misguided efforts. Their technorati trackbacks are flat, and alexa shows they had more visitors November last year than what they have currently, although they officially launched the website last October (!). An “unofficial” blogreveals that in fact they launched in 2006, but failed to get traction, and that’s why they did it again in October 2007.

Official press releases don’t do them justice either. 11 days ago, they struck a deal with Savvis, which will provide them virtual servers and data centers facilities for $5 million. Who the hell pays $5 million to host your website? Certainly not a web entrepreneur, who would rather get an EC2 account from Amazon if he/she really wants a scalable infrastructure.

I really hope I am proven wrong, that their investors didn’t play the lottery game and thoroughly checked that the founders and the management team were wise, smart, honest and perfectly know the web space before putting in $25 million.

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I am an electrical engineer interested in disruptive ideas. Founder of MontrealTechWatch, organizer at MTLNe ...

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