Zirtual launched in 2011 as a premium virtual assistant service. For a monthly fee, busy professionals got a dedicated, US-based virtual assistant to handle scheduling, research, travel booking, and other tasks. The company raised $5.5M and grew rapidly, with 400+ employees and thousands of clients. It was a darling of the "Uber for X" era.
Company Data
- Founded: 2011 — Maren Kate Donovan
- Total Funding: $5.5 million
- Failed: August 2015 (abrupt layoffs)
In August 2015, Zirtual suddenly laid off all 400 employees via a late-night email, effective immediately. Clients woke up to find their assistants gone. The company had run out of money—a failed funding round and the realization that the unit economics of US-based dedicated assistants at the prices charged didn't work. Startups.co acquired the assets for a small amount.
Key Lesson
People-based businesses have hard cost floors. US-based dedicated assistants at affordable monthly fees means you're losing money on every client. Treat employees better than a surprise email layoff—they're the ones who built your company.