News Burst: Net investment firm cuts staff

eSouk.com staff cut a sign of the times

Tough times are settling in for dot-com investment firms in the UK. The latest effect: Internet incubator eSouk.com Thursday axed nearly three-quarters of its staff, according to reports.

Incubators provide services and funding to Net startups while they are growing.

eSouk, which has invested in such firms as online wine merchant uvine and troubled news site NetImperative.com, cut its staff of investment specialists from 22 to seven, according to the Financial Times. eSouk will continue to finance Net startups with its $10m (about £6m) fund.

The move comes after NewMedia Spark, a major quoted incubator, bought rival Softtechnet for £30m to boost its investment funds.

More details to follow.

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