SpoonRocket has just informed its investors it’s shutting down its on-demand pre-made meal delivery service, after failing to raise the necessary capital to go on, according to a source familiar with the letter to investors. The company had actually reached positive unit economics, but due to the frosty fundraising climate, wasn’t able to get the money it needed to continue operating. The company had found an unnamed acquirer in a quick-service restaurants chain, according to a source, but they pulled out recently, leaving Spoonrocket to die.
SpoonRocket had raised $13.5 million in a 2013 seed from Y Combinator and several angels, and 2014 Series A from Foundation Capital, Base Ventures, and Sherpa Capital. The startup will liquidate some material assets it holds to pay back some creditors, but doesn’t have remaining venture capital to hand back to investors.
In the letter to investors, founder Steven Hsiao and Anson Tsui said SpoonRocket had hit an $8 million revenue run rate by the end of 2015. But with the market correction hitting capital-intensive on-demand services hardest, that wasn’t enough to bring in more funding.
We’ll have more details shortly
Source: http://feedproxy.google.com/~r/Techcrunch/~3/m7H5YSnTJuc/
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