D2iQ, the once-thriving cloud infrastructure startup, has officially announced its closure. The company, formerly known as Mesosphere and backed by Andreessen Horowitz, had garnered significant attention from software developers and raised an impressive $250 million in venture funding. Despite reaching a point of generating tens of millions of dollars in revenue annually, D2iQ decided to wind down operations.
This move follows the rejection of a buyout offer from Microsoft, a decision that had captured industry interest. On Thursday, the company sent notices to shareholders, revealing its decision to shut down and distribute assets to creditors. The shutdown marks another addition to the list of firms that have dissolved this year despite substantial venture capital support.
Nutanix, a publicly traded enterprise software firm, stepped in as a key player in the aftermath. They acquired some of D2iQ’s assets and intellectual property while also welcoming aboard several former D2iQ employees. This strategic move aligns with Nutanix’s ongoing efforts to strengthen its position in the competitive enterprise software market.
Despite its once-prominent status and significant financial backing, D2iQ’s closure serves as a reminder of the challenges in the rapidly evolving tech industry, where even successful startups may face unexpected hurdles.