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Roomi fails to raise another round of funding

Young startup faces challenges ahead

Founder Ajay Yadav (Credit: Roomi)

Roommate-matching startup Roomi has failed to secure another round of fundraising. This will force the young company to lay off around 45 of its 63 workers, according to CNN

What they do: Roomi’s app allows its users to browse through photos and personal details of potential roommates. Think of it like tinder for roommates! The company charges up to 10 percent of the first month’s rent for any lease signed through the service.

Something to ponder: VC’s invest with expectations for exponential growth. They are content if a company burns to the ground in pursuit of greatness — building a mediocre business is the ultimate failure! While excess capital affords a startup the opportunity to become the next Uber, traditional thinking runs counter to this ethos… It’s truly amazing how a company burned through $17 million so quickly.

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