Efinanceworks Fires Staff, Halts Investments

Efinanceworks, started a year ago to invest $300 million in online financial services start-ups, fired 27 of 34 workers and will cease making new investments, said a spokeswoman for founders General Atlantic Partners and Capital Z Partners. In all, the New York-based firm made 13 investments totaling less than $150 million, leaving untapped more than half the capital committed by the founders. Financial services investments not yet completed will be transferred to IFormation Group, a General Atlantic venture formed last June with Goldman Sachs Group Inc. and Boston Consulting Group, said spokeswoman Caroline Gentile. Efinanceworks’ existing stakes now will be managed directly by Capital Z and General Atlantic, though it is still unclear whether those stakes will continue to be held by Efinanceworks, Gentile said.