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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.

The Digg-style service used JavaScript that was embedded on participating pages to track how often posts were read, and top-read posts were featured on Spotplex’s homepage. The service set itself apart from Digg by requiring no intervention on the reader’s part to promote a page. On the other hand, Spotplex only recorded hits on blogs that had embedded the Javascript snippets, which severely restricted its sources of content.

Spotplex’s JavaScript embeds were also used to offer an analytics service that was designed to contend with sites like Alexa and Compete. While the addition of this service marked a shift to a very different market, both of Spotplex’s services leveraged the same backend.

CEO Doyon Kim says that the company’s ultimate failure was due to a lack of adequate funding. The company underestimated the resources that were required to build and maintain its service, and it neglected to seek venture funding after its $450,000 seed round. This is surprising given Kim’s experience in the industry: he co-founded DialPad, which was acquired by Yahoo in 2005.