Jobster, the much-hyped and heavily funded online-recruitment-meets-social-networking service, is out looking for more money, after burning through most of the $48 million it has raised since 2005. Founder and CEO Jason Goldberg left the company late last year, and has started a new social news site. Jobster, under new management, is now looking to raise more money, reports ERE.net. In a letter sent to investors, quoted in the story, the company lost about $11 million in 2007 and has less than $3 million left in the bank. Its burn rate about $1 million a month, an amount calculated from information contained in the shareholder letter, the story says.
Jobster has raised the previous funding from Ignition Partners, Mayfield, Reed Elsevier (NYSE: RUK) Ventures and Trinity Partners, and in 2006, after buying a few sites, laid off 60 employees, about 40 percent of its workforce. With the economy slowing down, recruitment startups may be heading into tougher times.