Jobster needs engineers to shuffle around startup graveyard
Jackson West · 09/11/08 07:00PM
With tyrannical founding CEO Jason Goldberg gone, Seattle-based Jobster is looking to replace departed CTO Phil Bogle. Rather than use its own job-listings product, the company has contracted a headhunter to make some calls. Meanwhile, they're letting go of less senior employees from departments like sales — leaving an office space in a waterfront building that can reportedly hold 200 with only 15 employees, nine of whom are executives and admins and six of whom are engineers. Oh, but it's hiring more, with the money new CEO Jeff Seely managed to raise in a $7 million fourth round of funding. Even with that infusion, Jobster can't be long for this world.Jobster gave away much of the farm when it raised its third round, way back in 2006. The $18 million third round brought the total raised to $48 million, but on a valuation only a little over $100 million — meaning there's probably little equity left to sell to investors. The $7 million secured in April was likely a "down round," or offered on an even lower valuation. Investors were probably looking to snap up what equity was left and keep the company going for just long enough to sell to someone. Anyone. Please. But if they're trying to cut the burn rate through layoffs, why is the company maintaining such a large office on the sixth floor in a prime Seattle location looking out over Elliott Bay? Our source was incredulous. "This makes no sense to me at all. No matter how good a deal they have, office space for 20 people would cost less on a cash basis." Maybe as a showpiece for possible acquirers? If that's the case, I'd take a cue from when the Mariners played in the Kingdome and the upper deck was always empty — cover the empty cubicles with a festive covers and bunting to keep it from looking like a mausoleum.
