The startup failed to raise a new round funding.
Mobile news app, Circa, is reportedly seeking a buyer after failing to raise money from venture capital funding. According to Fortune, the San Francisco-based startup was unable to finalize a deal with new investors because of its mobile-focused business model.
Apparently, Circa isn’t generating enough revenue (the company didn’t disclose its overall number of users) from page views because it doesn’t have a web application. Nor does it have a monetization strategy, or, perhaps, a subscription for its mobile apps. All these factors are warning signs to new investors.
Circa’s CEO, Matt Galligan, tells Fortune that there will be no immediate layoffs to its 20-person staff. Galligan says that it isn’t a “sell the assets” situation and that a third party is helping in the acquisition process. One thing is certain: many are interested in buying Circa.
“Our intent is to find the right partner to keep growing this idea,” he said. But Galligan isn’t ruling out the possibility of keeping the brand.
“Another (option) is that we apply our tech know-how to a different brand, or perhaps we integrate everything we’ve learned about the space and built so far in a way that the unique spirit of Circa lives on in another product,” he added.
Mobile news apps are a boon in today’s digital age. Giant technology companies like Google and Yahoo have invested tons of money by acquiring startups specializing in news curation. In 2012, Circa raised over $5 million from Quotidian Ventures and Lerer Hippeau Ventures.