What Led to Kozmo's Final Delivery

The market's reversal of sentiment on unprofitable dot-coms caught this promising but overextended one by surprise, and it never recovered

So close but yet so far. When Kozmo registered for a $150 million initial public offering in March, 2000, spirits at the New York-based home-delivery service for snack food and videos were sky-high. Its investment bankers were top-tier, the team at Credit Suisse First Boston led by star banker Frank Quattrone. Its venture lineup had star power too, notably Amazon.com and Softbank Capital Partners. With the cash from its IPO, Kozmo planned to expand into 30 cities across the country. At a party on the penthouse floor of a Manhattan office building just after Kozmo filed for its offering, then-chief executive Joseph Park hopped up on a table and told his troops their future was limitless.

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