More VC-Backed Busts

Time to add another couple of VC-backed busts to the list we first compiled last month (download original).

First up is Edgeio, which provides provided technology for online classifieds listings (jobs, cars, etc.). Company co-founder Mike Arrington writes that the company’s original business plan had it running out of money this month, and that new capital was not forthcoming due to an inability to meet either customer or revenue milestones. Edgeio had raised a small angel round in early 2006, and then added $5 million in Series A funding later that year from Intel Capital, Trans Cosmos, RSS Investors and Millennium Technology Ventures.

Second is NanoCoolers, an Austin, Texas-based developer of a thermoelectric cooling system for semiconductors. The Austin-American Statesman reports that NanoCoolers was simply unable to move its technology from concept to fruition, so its investors decided to cancel a planned funding round. 

The company had raised around $19 million in total VC funding since 2002, including a Series AA recap last year and a small bridge loan this past February. Backers included Austin Ventures and Draper Fisher Jurvetson. It also secured an additional $3 million from the Texas Emerging Technology Fund .

1 Comment

  • [...] Funding Will Not Necessarily Get You There – Flexlight Networks Closes Shop – Despite $30M in funding, Flexlight Networks has closed its gates and fired its 25 employees. Flexlight Networks was regarded as one of Israel’s high tech big promises. The company was founded in 2000 and managed to survive the big bubble burst developing a suite of optical access products. PE Hub reports about Edgeio and NanoCoolers, who shared the same fate. Deep pockets , but no delivery. Michael Arrington, one of Edgeio’s main investors, wrote about it on TechCrunch. [...]

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