This column memorializes those dot bombs which have become extinct. Some of them went under through no fault of their own, others had such poor management and such incredibly silly business models that it's astounding that they received any funding in the first place.
Flooz was started in August 1998 as a way for consumers to purchase gift certificates. Basically, Flooz was intended to be a kind of online currency, similar to Beenz but a little more "high scale".
How did the word come about? The founders (Robert Levitan and Spencer Waxman) were looking for a name for their new company. They wanted to combine email, gift certificates and getting customers in one concept, but none of that sounds very romantic or attractive. Mr. Waxman named the company "flooz" which sounded, well, interesting, especially since it's an ancient Persian word that has become Moroccan slang for cash.
Whoopi Goldberg became the company spokesperson, pitching Flooz on television and in print. She had a way of looking people in the eye and saying, "choose your own damn gift", which appealed to everyone who has spent hours looking for the perfect gift.
The way Flooz worked was simple. If you wanted to send a gift to someone, you logged into your Flooz account, indicated how much you wanted to spend, entered the person's name and email address and attached a greeting. You paid for the certificate with your credit card, and the email was sent to the lucky recipient.
Unfortuntely, Flooz burned through money (over $50 million in venture capital) and finally, at the end of August 2001, closed it's doors for good. They left a small notice on their web site to mark their passing.
"We regret to inform you that Flooz.com, Inc. has ceased operations. The offices are closed and the company will file for bankruptcy protection. Flooz.com has been adversely affected by dramatic changes in capital markets and the general slowdown in the economy. Flooz.com had been in merger discussions with a number of companies but was unable to find a suitable partner."
This story was not entirely accurate, however, as reported in the New York Times. The report stated that the company was a victim of a credit card fraud ring in Russia and the Philippines.
What happened? According to the report, Flooz sold $300,000 of it's currency (gift certificates) to credit card thieves. Stolen credit card numbers were used to buy the "Flooz", which was in turn used to purchase merchandise.
"To cover any future refund requests from those credit card customers, the processor withheld daily reimbursements to Flooz.com from credit card sales and froze other accounts until it held $1 million of Flooz.com's money by the second week of August," the story stated.
May Flooz rest in peace.
Unless otherwise noted, all photos and text is Copyright © Richard G Lowe, Jr.