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"Austin startup Itzbig Inc. is shutting down.
According to a letter sent to employees Friday by CEO Jim McGovern, the company, which operated an online recruiting service, was unable to raise the money needed to stay in business.
McGovern says Itzbig will liquidate its assets and return money to its secured creditor.
"Unfortunately," the letter says, "there will not be enough funds available to repay our unsecured creditors."
McGovern confirmed by e-mail Monday that the company is ceasing operations. He added that "a few members of management are exploring whether there are any alternatives to shutting down," but he declined to elaborate further.
The company, which launched its service in June 2007, raised $6 million in venture capital from Sevin Rosen Funds and Rho Ventures. Its founding team was headed by tech industry recruiting veterans Jim Hammock and Hank Stringer. Both left the company in the spring."
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