When eCoverage Inc. launched its Web site in September 1999, the San Francisco-based company boldly declared "the industry is history." However, less than two years later, the company itself is history.Despite obtaining more than $16.4 million in private financing and other secured debt, eCoverage ran out of cash, and in March agreed to license its technology to GMAC Insurance Group, a division of GMAC Financial Services.
Proceeds from the agreement were not disclosed, but will be used to pay secured creditors, says Jon Kelly, who was eCoverage's vice president of product development. Private backers, including Accel Partners, E*Trade, RRE Investors and Softbank Technology Ventures, will not receive any proceeds, he adds.
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