Usually at Austin Startup we get to write about exciting developments such as new financings or exit events.  But, today we have to report on the decidedly more difficult aspect of being an entrepreneur: shutting down a company.  Nanocoolers, which was attempting to develop semiconductor technology-based cooling for processors, electronic systems and enclosures, has announced it is shutting down.  Founded in 2002, the Company had raised more than $24 million in venture financing, but was unable to close their next round of financing, and on November 30 closed its doors.  According to Krishna Srinivasan, a board member and Partner at Austin Ventures: "To put it very simply, the technical challenges have proved to be substantial, and after many years of trying, we just have not been able to solve the problem."

This is an unfortunate development for both Austin Ventures and the Emerging Technology Fund, the $295 million emerging tech fund form by the State of Texas in 2005, which awarded the company $3 million in March.  While basic statistics forecast that we are bound to see some of the startup companies in the Austin area fold, it doesn’t make it any easier.   Here is to better luck in the next iteration for all involved with Nanocoolers!