The Sad Truth of Startups

December 7th, 2007 at 12:00 am
 


It’s not everyday that more than one Web2.0 company shits down and calls it quits.  We’re used to seeing startups getting funds or acquired.  Today is different, 3 companies are pulling the plug on their businesses.  Is this a sign of a popping bubble?

———– 

Richard MacManus of Read/Write Web reports:

"MingleNow, the nightlife-focused social network that launched last October, is closing down on 7 January according to a statement on their blog. No reason was given, but Read/WriteWeb has learned that Yahoo may be behind the closure. Yahoo bought BlueLithium, an ad network, in September this year – and BlueLithium owns MingleNow.com. So our source tells us that Yahoo probably asked MingleNow to close down."

– 

Michael Arrington (who’s having a shitty day today):

"Edgeio, a company I co-founded in 2005, had a final board meeting this evening and made the decision to shut down operations of the company. We are putting it into the TechCrunch DeadPool."

– 

Josh Catone on RWW reports:

"PayPal competitor FirePay notified members today that will begin the process of shutting down later this month. The UK-based online money exchange service will begin shutting its doors on Monday, December 10, 2007 when it will no longer allow users to add funds to their accounts or transfer money. Users will have 150 days following that date to withdraw funds from their account or review account statements."

—————

Surprisingly, all these reports came in today.  It’s not friday the 13th or anything but this sure is new.  I’m sad to hear these companies shut down and I fear the possibility that many others may be on their way (yikes!).  Are these signs of another bubble burst?  It may be too early to say but this definitely isn’t good.