Edgeio Classifieds Closing their Doors

Edgeio, the classifieds site that raised $1.5 million in angel funding and another $5 million in Series A funding has decided, after 15 months of burning cash to close their doors.

First to pick this up was TechCrunch, where Michael Arrington, an editor at TechCrunch and co-founder of Edgeio announced the board members have decided to close the doors.

The company burned through that money according to plan, meaning they ran out this month. The product roadmap was fulfilled, meaning development lags didn’t hurt the company. But the revenues didn’t come in and user/partner milestones weren’t met. And that meant no one else was going to put more money into the company.

Update: I just received this email from them:

 Hello-

You are receiving this email because you have submitted listings to
edgeio.com.

On Friday 7 December, due to its inability to fund ongoing operations,
the Board of Directors recommended closing down the company and selling
its assets. As a result there will be an auction for edgeio’s assets,
starting Tuesday December 11th 2007, and terminating on Friday December
21rd 2007. The service will remain operational through the auction
period and, depending on the winner, may continue to run after the
auction closes.

To learn more about edgeio and the auction process, visit
http://wiki.edgeio.com. People who are interested in bidding should
contact mailto:auction@edgeio.com.

Thank you for using the edgeio service.

The edgeio team