Seed Stage Slaughter

Seed Stage Slaughter

Scoop St. Sidesteps Tough Funding Market, Acquired by BuyWithMe

Co-founder Justin Tsang.

BuyWithMe, “a daily deal contender” or “Groupon clone,” depending on who’s doing the talking, announced last night that it acquired its fifth company this year. This time they plunked down cash for Scoop St., which took a hyper-local approach to discounted deals, focusing only in New York City. AllThingsD reports that the terms of the deal weren’t discussed, beyond the fact that it was all-cash, but considering Scoop St. just announced its own branded mobile app earlier this month along with a new lottery feature, it probably wasn’t in the works for that long.

A recent report from the 451 Group found that acquisitions were up in the suffocatingly crowded deals space, but the Scoop St. buyout is also another indicator of the impending seed stage slaughter we’ve been trying to warn you about, as the early stage funding banked in the heady days of 2010 runs out. Read More

Seed Stage Slaughter

Entrepreneur Indicted After $590 K. Investment Allegedly Produces No Website, Just Tribeca Loft and $26 K. in Groceries

The On1ave logo.

Andrew Albert, 49, convinced at least three investors to give him about $590,000 for a luxury shopping site, according to Manhattan District Attorney Cyrus R. Vance, Jr., who announced an indictment on charges of Grand Larceny in the Second Degree, Scheme to Defraud in the First Degree and Criminal Tax Fraud in the Third Degree. “Andrew Albert falsely told investors that his shopping website would feature a virtual street akin to famous retail boulevards like Madison Avenue or Rodeo Drive,” Mr. Vance said in a statement. “In reality, the company he created served as nothing more than a bank account that the defendant used to pay for his personal expenses and lavish lifestyle.”, the website Mr. Albert and his partner at the time, Prada PR vice pres Melissa Skoog, were allegedly building and which The New York Observer reported on in 2008, appears to be long-stale. A simple HTML page says “Welcome to a new & exciting way to shop, socialize and live. On1Ave, A Brand New World. Opening Summer 2009.” Read More

Seed Stage Slaughter

The Seed Stage Slaughter Begins: MyNines Shuts Down, CEO to Rue La La

Mown down by the markets

If you’ve been listening closely at tech parties and events over the last month, you could begin to hear the tectonic rumblings of a reckoning. The bubble in seed stage funding that saw hundreds of start-ups raise capital during 2010 is coming to an end. And many of the companies who raised less than $1 million are now running out of cash.

This morning we got an anonymous tip, since confirmed, that flash sales aggregator MyNines, which raised $750K back in April of 2010, has shut down. The company’s website is currently offline. Founder Apar Kothari has been named vice president, head of business development and strategic partnerships at private sale shopping destination site Rue La La. (Sounds like that emerging talent pool we told you was coming.) Read More