I heard from a friend this week that their company was shutting down and, frankly, I was shocked. I wasn’t an investor in the company but I knew their investors well. The company was a darling in their respective portfolios. They were executing incredibly well.
Then, they were gone.
Where, once, investors jockeyed for position to fund they politely declined to lead another round. What was once a “hot” space had cooled. What fundable milestones for the business looked like 6 months ago had now moved far beyond their reach. Short on time, options and AI (or whatever the invest theme de jour has since become) they faced the inevitable. The market had moved on, and they couldn’t continue to exist without ongoing financial support of investors.