More tech startups call it quits

The economy is taking its toll on Silicon Valley startups, forcing many to close their doors or sell out for a very low price. In recent weeks, Attune Systems Inc. and Reactrix Systems Inc. have wound down their operations. Other startups including Guava Technologies Inc. have sold themselves off for sums far less than what their investors spent on them.

"Start-ups are failing faster and you're going to see a major shakeout," Martin Pichinson, a managing director of Sherwood Partners, told the Wall Street Journal. The Mountain View, Calif., firm specializes in winding down startups, and since mid-January it has shut down an average of three a week.

Among the companies that Sherwood is currently closing is Allux Medical Inc., a company that made devices to treat dermatological problems, had raised more than $11 million in funding.

The troubles are not limited to Silicon Valley. VuBotics Inc., an Atlanta-based maker of software for wireless devices, filed for Chapter 11 bankruptcy protection in November, while nTag Interactive Corp., a maker of high-tech name tags out of Boston, filed for Chapter 7 bankruptcy protection the day after Christmas.

For more on startup troubles:
- see this Wall Street Journal article

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