Glenn Fleishman reports that TelSym, one of the more touted Intel Capital investments in the VoIP space has shuttered their doors while they hope to find some additional investors.
While their publicity was great I think this is one of the first companies of recent vintage who Demo’d at DemoMobile in 2002, I questioned their chance of success from the very start.
While they had a very good concept, their proprietary approach to VoIP when SIP was emerging was not good. Add to that idea that Skype, which is also proprietary was free and you had certain death.
When I met their team at Demo they cast the impression that they were elite and beyond what was happening. In the end that “we’re without question better” likely did them in.
You can read more, including how the founders were done in by the investors.