Venture Deal Cancelled Due To The Tragedy

from the bad-timing dept

Apparently the VC firm that was about to lead an $8 million round in PeopleStreet pulled out right after the attacks last week. Not surprisingly, the other investors pulled out as well, and the company laid everyone off and is trying to sell off what's left. The VCs say it really had nothing to do with the tragedy in NY and DC, but others aren't so sure. I think it would be odd that a deal would completely collapse due to such a thing, but perhaps. My guess is there were other factors, and maybe the VCs used this as part of the excuse for saying no, and the PeopleStreet guys thought it made a better story to say "we lost the deal because..." instead of "we couldn't close a new round".

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