Brooklyn's Loosecubes — which raised more than $7 million a few months ago — shut down today. Campbell McKeller (photo) is the founder of Loosecubes.
The thing is that many of the startups that were able to raise seed rounds or their first venture-capital financing — a Series A — have run out of cash. The number of expansion-stage deals — generally Series B or later — collapsed from 305 a quarter to 207 earlier this year, according to a National Venture Capital Association study.
The fiscal cliff for startups funded in the recent explosion of seed-stage deals has arrived: LA-based BetterWorks, for example, shut down its service over the summer just one year after raising a $10 million Series A. Earlier this fall, Bravo reality star Dwight Crow put his startup up for sale and landed at Facebook. San Francisco's DailyBooth and New York'sFondu both found homes at Airbnb.
What do you think: is this much tech startups and their failures good for the economy? If "Yes" - Like this post, "No" - let us know the why of your decision in the comments.
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