Online Gift Company Wantful Shuts Down
Wantful is an online gift website that has shut down. John Poisson, the founder and CEO of Wantful wrote a blog post that said that the company was forced to shut down after losing a planned follow-on investment.
Poisson said that the investment was part of a strategic relationship with Nordstrom. Nordstrom and Wantful launched a joint gift venture earlier this year. The deal between Nordstrom and Wantful fell through last week itself.
“In their calculus it didn’t make sense for them, and that was right. But when they pulled back, it put us in a position where we didn’t have time to react,” stated Poisson.
The deal fell apart only last week.
Other investors that put money into Wantful’s $5.5 million Series A aside from Nordstrom’s included Harrison Metal, Greylock Partners, Forerunner Ventures, Dave Morin, Dennis Crowley, and Matt Mullenweg.
“The bottom line is we’re not responsible for what’s going on here,” stated Nordstrom spokesperson Colin Johnson as quoted by AllThingsD. “We lived up to our obligation, and unfortunately the company didn’t meet the conditions we laid out to invest.”
Nordstrom gave Wantful around $100,000 in last minute cash as Wantful was going under to help take care of the 16 employees of the WAntful team that was losing their jobs.
To learn a little bit more about Wantful, read this interview I did with Poisson last year.
This article was written by Amit Chowdhry. You can follow me at @amitchowdhry or on Google+ at +AmitChowdhry