According to ERE, Jobster has burned through most of the $48 million it raised a few years ago and is out trying to raise another round of capital. The Seattle-based company, which garnered tons of attention thanks to dysfunctional, egomaniacal CEO Jason Goldberg (who is now running a new start-up SocialMedian), is under new management.
With losses of $11 million in 2007, a monthly burn rate of around $1M, and less than $3M in the bank (according to a letter to shareholders), Jobster should expect a pretty brutal, cram-down round from either existing investors (Ignition Partners, Mayfield, Reed Elsevier Ventures and Trinity Partners) or new investors. Given the current environment, I have to imagine there’s a chance that the company may not be able to raise any money at all, or maybe just enough to keep the lights on long enough to sell the business. Regardless of what happens, things have undoubtedly gotten ugly for Jobster. The job board darling of 2006/2007 may be the first high-profile casualty of 2008.