Worse, the mass lay off that’s been confirmed by its CEO this week could be the final breath before the plunge. A well-known tech site first broke the news earlier (as in just a few days ago earlier) and since then the bad news has made the rounds.
The problem seems to be a lack of funding. Currently valued at $500 million dollars, BuyWithMe failed to snag a fresh round and has suffered as a result. No surprise that the word’s out BuyWithMe is looking for a buyer to buy them!
The last time BuyWithMe grabbed headlines here at NY Tech Blog, the daily deals hawk was in an acquisition spree. It bought choice pickings from either coast, including more than a couple from San Fran. These are TownHog and Swoop. Apparently, in light of recent events, all to little avail.
As a result, BuyWithMe has let go of a hundred staff and could fold within a ridiculously short time. Bearing witness to such a tragedy should reinforce a cold, hard truth: Most startups fail. It’s almost a law of nature. This might also sound the death knell for daily deals sites as unconfirmed reports have arrived that other similar operations are shedding staff as well.
A statement BuyWithMe CEO Jim Crowley apparently released via a PR firm went the ambiguous route:
BuyWithMe did have a significant reduction in staffing this week. We did this so the company is in the best position to continue to serve its merchants and members. As an organization we’re continuing to pursue our business and to support our customers throughout the country.