Co-founder Matt Galligan announced that Circa will be shutting down. The news app had been available for three years until it was placed in “indefinite hiatus.”
Wednesday, Galligan made the announcement on Medium, days after Circa said there would be an announcement on its status. Circa has been funded by venture capital, but it failed to secure another fundraising round. As such, there were attempts to sell itself. Various outlets, such as Twitter and the Daily Dot, were at time rumored to be possibly purchasing the news organization.
Galligan said online that negotiations are continuing regarding Circa. However, he did not say whether the negotiations are over further funding or selling the news organization. While thanking their funders, editor-in-chief Anthony De Rosa said that several backers had not paid yet. He promised to raise a storm if they did not fulfill their obligations.
Circa was dependent upon venture capital funding as it developed a revenue stream from its products. Galligan said that they were unable to reach enough funding in order to move to being dependent on revenue. “Our ongoing plan was to monetize Circa News through the building of a strategy we had spent a long time developing but unfortunately we were unable to close a significant investment prior to becoming resource constrained.” Although, he added, “Indeed, though a failure to build a business out of the product we created is now our fate there is still so much to look at and consider a success.”