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Identity 2.0 Startup Sxips Into the Deadpool

After unsuccessfully trying to sell his startup Sxip Identity to Google or Microsoft, CEO Dick Hardt is now facing a lawsuit over the insolvency of his startup. Hardt is perhaps best known for his amusing slide show explaining his company’s Identity 2.0 system. It typically started with the slide at right asking, “Who is the Dick on your site?” Investors are now asking a similar question.

Hardt is not making funny slide presentations these days. According to a complaint from investors in Vancouver, where Sxip Identity is based, Hardt raised $370,000 as a bridge loan until he could sell the company. According to TechVibes, which covered this last week:

When Hardt’s attempts to sell Sxip Identity failed, he told the plaintiffs that Sxip Identity was insolvent and that their notes has [sic] little or no value. This is where things get messy. The plaintiffs allege that Hardt failed to disclose that there were two separate Sxip entities (Sxip Identity and Sxip Network - he is CEO and President of both) and that only Sxip Identity would be a party to the notes.

Sxip Identity is indeed insolvent with a March 2008 balance sheet indicating that they owed Sxip Networks $4.7 Million and Hardt personally $275K. Sxip Identity’s total assets at the time were just under $1 Million.

That’s a pretty slick move, Dick.

Identity is still a problem that needs to be solved. Unfortunately, Sxip won’t be solving it.

Just because someone can give a good pitch, does not mean they can build a real company. Below is Hardt giving his slide show pitch at eTech in 2006.

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