Dotcoms fall victim to slow economy

Another dotcom bust might be underway.
Almost exactly a year ago, we wrote a story about how Silicon Valley was once again partying -- and doling out venture capital -- like it was 1999. The story cited the example of three well-funded, similarly-named Internet phone calling start-ups, Jaxtr, Jangl and Jajah, as an indication of the heady times.
Now Jaxtr just announced layoffs and the resignation of its CEO.
Jangl has already gone out of business.
(Jajah is hanging in there, recently raising $10 million in a second round of venture capital funding.)
Many other start-ups are struggling too thanks to the giant economic downturn. Women's network Glam Media today said it won't be able to pay its bills on time. MatchMine, a company that helped people organize digital media, shut down despite receiving $10 million in funding a year ago. Mahalo, a well-known new search engine, cut 10% of its staff. And that's just the beginning.
By Michelle KesslerPhoto: Jaxtr


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