Circa News, the mobile news app that was founded in 2011 and received $US5.7 million in venture capitalist funding, is shutting down, at least for now.
Circa CEO and co-founder Matt Galligan announced today that his app and website have been put on “indefinite hiatus” due to a lack of funding.
“Producing high-quality news can be a costly endeavour and without the capital necessary to support further production we are unable to continue,” wrote Galligan in a lengthy paragraph on Medium. There apparently was a plan in place to monetise Circa News, but the startup was “unable to close a significant investment prior to becoming resource constrained.”
“It’s with a deep sadness that we find ourselves in this position,” added Galligan, who noted that some of Circa’s team have already found jobs elsewhere.
In early May, Fortune reported that Circa was looking for a buyer after failing to close on a crucial investment. Nothing new has been published on Circa News since June 21. Wednesday morning, the news service’s editor-in-chief tweeted about the editorial team being left in the dark:
According to Galligan, “we’re still working through an opportunity to keep the technology and spirit of Circa alive.” The Desk reported earlier this month that Daily Dot Media was interested in a possible acquisition of Circa.