VC-Backed Busts: Hammerhead Systems

#3. Hammerhead Systems

Mountain View, Calif.-based data communications equipment vendor.

Investment
Hammerhead had raised just over $100 million in VC funding since its 2002 inception, from firms like Foundation Capital, Mayfield Fund, Enterprise Partners Venture Capital, Pequot Ventures, Silver Creek Ventures and Apex Venture Partners.

What Happened?
The company had interest — and claimed to have two tentative deals — with carrier customers, but failed to land a hardware partner that the carriers wanted for fiscal stability (apparently all that VC funding wasn’t sufficient). Hammerhead officially shut down on March 19.

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