Virtual Assistant Service Zirtual Abruptly Shuts Down The company surprised clients and employees Monday morning with an email announcing its closure.

By Nina Zipkin

Zirtual | Official Website

The startup world can be a volatile one. The sudden shutdown of Las Vegas-based virtual assistant service Zirtual is a reminder that things can go south, apparently in an instant.

Zirtual's clients and about 400 employees received an e-mail today that said the company would immediately be halting operations due to "market circumstances and financial constraints." Zirtual deleted its Twitter feed, Facebook page and Google+ account. As of now, there is no farewell post on its corporate blog. The full letter is included below.

Related: How to Shut Down Your Struggling Startup

The company allowed clients to employ a dedicated virtual assistant to handle tasks like scheduling, billing, booking travel and more. It was founded in 2011 by CEO Maren Kate Donovan, head of UX Erik Jensen and head of people and culture Collin Vine. Ramon Icasiano, who has worked for Netflix and Verizon, was hired as COO in May.

From the outside world, nothing seemed amiss. Zirtual secured $2.6 million in debt financing in June and an additional $650,000 at the end of July and counted Zappos founder Tony Hsieh as one of its early investors. In April, the company released a statement highlighting the fact that its workforce was made up of full-time employees with benefits, rather than contractors.

Related: How to Save Your Business From Doom

Donovan's last tweet was posted on Saturday, in which she thanked angel investor Jason Calacanis – who also invested in the company -- for having her on his podcast, This Week in Startups. During the hour-long conversation posted on Friday, Donovan did not discuss that the business would be closing its doors.

The abrupt nature of the company's shutdown and has led to a less than favorable response on social media, but it seems that some former clients and their assistants are planning to continue to work together.

Related: 5 Truths to Remember When Facing Failure as an Entrepreneur

Dear Zirtual Clients,

It is with an incredibly heavy heart that I have to send this message. As of today, August 10th 2015, Zirtual is pausing all operations.

Due to a combination of market circumstances and financial constraints we must re-organize our current structure if we are to successfully serve you in the future.

I realize this news comes incredibly fast and I am truly sorry for the Z-shaped hole this will leave in your lives and business.

We know that many of you care deeply about your Zirtual Assistants. If you would like to connect with your assistant independently, please reach out to: questions@zirtual.com.

Thank you from the very bottom of my heart for the support you've shown Zirtual and my deepest apologies for the speed and inconvenience of this announcement.

We will communicate any further updates as soon as we have them.

Best, Maren, Erik, Collin + the Zirtual Team

Nina Zipkin

Entrepreneur Staff

Staff Writer. Covers leadership, media, technology and culture.

Nina Zipkin is a staff writer at Entrepreneur.com. She frequently covers leadership, media, tech, startups, culture and workplace trends.

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Business Ideas

70 Small Business Ideas to Start in 2025

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2025.

Business News

Starbucks Is Opening a New Location Next Week — And It Was Constructed with a 3D Printer

The 1,400-square-foot 3D-printed location will only handle drive-thru and mobile orders.

Growing a Business

No Sales Experience? No Problem. Here's How to Confidently Turn Conversations Into Revenue.

Here's a practical, no-fluff guide for founders who need to sell but don't see themselves as "salespeople."

Business News

Saying 'Please' and 'Thank You' to ChatGPT Costs OpenAI 'Tens of Millions of Dollars'

It's more environmentally friendly (and cost-efficient) to skip the niceties.

Marketing

Word-of-Mouth Alone Can Double Your Revenue Growth — Here's How to Turn Your Customers Into Brand Advocates

Customer experience isn't just about feedback — it's your biggest growth lever in 2025. Discover how turning customers into advocates can double revenue growth, boost conversions and maximize customer lifetime value.

Business News

Everyone, Including OpenAI, Wants to Buy Google's Chrome Browser, According to a Top ChatGPT Executive

ChatGPT's Head of Product was called to the stand in Google's hearing on Tuesday.