VerticalNet
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Verticalnet Inc. (Nasdaq:VERT) was a "provider of On-Demand Supply Management solutions to companies ranging in size from mid-market to the Global 2000" and host of business-to-business (B2B) procurement portals ("B2B hubs"). Founded in 1995 and headquartered in Malvern, PA, Verticalnet became famous during the Dotcom bubble for its US$12 Billion valuation in early 2000[1], at a time when the company had few tangible assets and a revenue stream of only US$112.5 million. At the peak of its valuation, VerticalNet operated few B2B portals, plus more than 50 Internet business-to-business trading communities as well as professional communities.
In 1999, the company lost US$53.5 million on revenues of 18.4 million. In 2000, revenues increased to sixfold to $112.5 million, but losses multiplied equally, resulting in $311.3 million negative net income that year. Despite claims by Verticalnet CEO Mark Walsh that the company would become profitable by Q2 2001[2], profitability was never achieved[3]. In 2007, VerticalNet was sold to Italian cement manufacturer Italcementi for USD 15.2 million.
