Mobile startups Blip.fm and VuBotics are struggling to stay afloat, part of the rising tide of high tech startups that are finding it increasingly difficult to navigate the crumbling economy. Though we saw a surprising number of firms in January reporting that they had raised funding–including $30 million for SMS search firm ChaCha and $12.5 million more for AdMob, mobile companies are obviously not immune to the downturn.
According to the WSJ.com, SF-based microblogging service Blip.fm, which lets users share short messages about music, is keeping itself alive on the remaining funds it raised from investors after its founder and CEO Jeff Yasuda shut down his other music startup, Fuzz.com. In November, VuBotics, an Atlanta-based wireless technology firm that has created software to allow text on mobile devices to be more easily read, filed for Chapter 11 bankruptcy protection. Yasuda told the WSJ, “It’s just brutal. Had the markets been different, I would’ve been able to raise a lot more capital and maybe I could’ve given it more of a shot.” Of course, for others the shakeout is an opportunity, with some of the exiting companies being snapped up at bargain prices. Could this happen to Blip.fm? GigaOm posits it could find a good home with Spotify or Last.fm.