We introduced Spotplex in February 2007 as a potential Digg killer that served up popular stories by monitoring how many people read them. Somewhere along the way, it also turned into an Alexa-like analytics service. Unfortunately, neither market worked out for them and they’ve been forced to shut their doors.

CEO Doyon Kim says that Spotflex’s ultimate failure was due to a lack of adequate funding. Spotplex’s developers underestimated the resources that were required to build and maintain their service, and they neglected to seek venture funding after their $450,000 seed round.

Which got me thinking:

If you had to choose between

a) a company that is kicking ass operationally but financially had little to no capital

OR

b) a company that had oodles of capital in the bank but operationally was not gaining traction… what would you pick?

Feel free to chime in.