Economic Downturn Hit Zazzle

The troubling global economy has impacted every corner of the globe including many start-up companies in Silicon Valley. Among the victims, Zazzle announced a 15% layoff at the end of January, 2009, while CafePress already went through the pain a year ago.

The layoff included 28 out of 110 in the corporate office and the rest in the company's factories. Zazzle, a rival of CafePress, was founded by Robert Beaver and his two sons in January, 1999. The company was primarily backed by by Kleiner, Perkins, Caufield & Byers and Sherpalo Ventures, who in 2005 provided $16 million in series A funding. The company has enjoyed steady growth over the past couple of years. With consumers tightening their spending, the company has seen drastic decline in revenue.

I hope Zazzle has got the wisdom in navigating the economic storm, as I have enjoyed working on my Cartoosh Gallery in the past month. Let's wish them well and keep our fingers crossed - for all of us!