Itzbig to Shut Down

Maybe resumes are important. That’ll be the question of the hour for folks watching the demise of Itzbig.com, the startup that launched in 2007 with $6 million in venture capital. The company says it is closing because it has been unable to secure enough additional funding to continue.

Itzbig used online surveys, not resumes, to match job seekers to companies. The service focused on employed information technology workers who wanted to keep tabs on the job market anonymously.

In April, the Austin firm slashed its rates by almost 90% with the hope that its matchmaking technology would turn Itzbig into the preferred job-search site for companies. And at the ERE Expo last spring, the company unveiled a new “Pay per IQA” model that allowed users to post as many jobs as they like for free, paying only when they got results, or put another way, candidates who were “Interested, Qualified, and Available.”

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According to an article published Monday in the Austin American-Statesman, Itzbig CEO Jim McGovern sent a letter to all employees late Friday, writing that the company’s “Board of Directors has instructed us to liquidate the company and to return the remaining funds to our secured creditor, a major bank which provides growth capital to start-up companies. Unfortunately there will not be enough funds available to repay our unsecured creditors.”

Until the company is closed completely, the company’s website will become free to use for everyone.

Elaine Rigoli has nearly 15 years of experience managing content and community for various B2B and consumer websites. Elaine has written thousands of business and technology articles and has been quoted in The Wall Street Journal and eWeek, among other publications.

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5 Comments on “Itzbig to Shut Down

  1. Don’t know the particulars or if this applies, but what I DO know is anything in our business which attempts to substitute technology for direct contact selling (the telephone) is doomed to fail.

    Many organizations are trying to invent the “magic bullet” business model which eliminates once and for all the least appealing, most difficult, yet most critical part of the search, placement, and staffing businesses: direct selling. When they do succeed, it will be when everyone marries online and doesn’t meet their spouse until the wedding night.

  2. It was precisely because the CEO fought until the bitter end to ignore the value of the resume that the company failed.

    And it was never meant to be anything but a technology tool to bring people together faster, not to eliminate the need of direct contact.

  3. A) I never could the site to actually work. It had serious functionality problems and it would not return pages.

    B) Written resumes will ALWAYS be required for white collar jobs. ALWAYS. Forever. Eventually, it will be a standardized hybrid of a resume and an application form and will be able to be 100% portable among systems, and may include fact checking/verification baked in and digitally verifiable. Anybody who thinks WRITTEN resumes will vanish from the recruitment/hiring process is ill-informed or delusional.

    C) They tried to buy a product from us. We never made the sale because every time we sent them a license, they added 3 more pages of free stuff that they demanded. After 6 iterations, we threw up our hands and just walked away. Lucky us.

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