[spiffyman]

> all of its rounds after seed funding were debt rounds, including one at the end of July

This surprised me. They burned through a round in just a few weeks? And looking at their funding history[1], they closed $2.6M back in June. So that's $3.25M in less than 60 days.

It looks like the July round was targeting $3M and they only got $650k[2]. Maybe an expected deal didn't go through and it was just as much a shock to the management as the employees. This could just be a case of unrealistically high fundraising expectations, with unfortunate consequences for everyone. OTOH, assuming they hit the end of their runway, they had a burn rate of at least $1.6M/month, so I don't know how that last round was supposed to help for long.

Anyway, this is all armchair speculation. I hope their CEO can take some time and then share her experiences. It would probably serve as a good lesson for others.

[1]: https://www.crunchbase.com/organization/zirtual/funding-roun... [2]: http://www.sec.gov/Archives/edgar/data/1566557/0000897069150...