Local chip company Mutant Logic has closed after finding that the technology didn't work as expected. The company had raised $500,000 in angel investments and employed eight people. Upon shutting down, the firm returned about half of the investment to the investors. Read more about Mutant Logic closes

Ruby On Rails hosting provider Engine Yard (see our profile) has announced they've taken a large round of lease financing to help them build out their datacenter capacity. The $2.5 million financing will allow Engine Yard to improve their infrastructure, allowing them to add five hosting clusters, including one in Europe. Read more about Engine Yard gets $2.5M, moves to SF

Inc. Magazine is presenting a panel on how to build a successful small business. The panel will be moderated by Inc. editor Donna Fenn, author of Alpha Dogs: How Your Small Business Can Become a Leader of the Pack and includes local panelists Yatish Mishra, co-founder of RagingWire and Whitney Roberts, founder of Bar exam test prep service The Bar Code.

The discussion is being held at IKEA in West Sacramento (who knew they had public meeting rooms?) next Tuesday night. Read more about Inc. Business Builders panel

Sacramento call-center management firm TeleDirect has absorbed EyeballFarm, a Sacramento-based local search engine marketing consultancy.

The two companies have created InstantExpert, a product that aims to provide an online and offline advertising platform for small businesses. Read more about TeleDirect, Eyeballfarm Merge to create InstantExpert