Exclusive: Layoffs at Xpert Financial

June 26, 2012, 9:26 PM UTC

FORTUNE — Xpert Financial, an online platform for private company investing, has laid off more than half of its staff, Fortune has learned.

CEO Thomas Foley confirmed that the company now is down to just 10 employees, without specifying how many people received pink slips. According to a recent profile in the Silicon Valley Business Journal, however, Xpert Financial had 28 employees with plans to add up to another 40 in the next year.

So why the cuts? Foley says that the company has decided to refocus on its investment platform product and away from offering investment banking solutions.

“We were providing services to investment banking partners, but were also competing with the investment banks for clients,” Foley explains. “That might not have been the right strategy, so our goal now is to prove out the platform by getting our next deal closed.”

No word on what that deal is, although Fortune previously reported that Hudong.com, Chinese-language encyclopedia wiki, was using the system to raise $50 million in Series C funding.

It also sounds like the company might have been under some sudden pressure, with Foley saying that it wants to reach “sustainability” without needing to secure additional outside investment. To date, the company has been backed by angels like Tim Draper (whose son, Adam, is a company co-founder who declined comment). Foley had made no mention of a strategic shift in the SVBJ piece, nor in a subsequent interview with me just three weeks ago.

Steven Blake also has stepped down as Xpert Financial’s general counsel, but Foley says it was unrelated to the layoffs.

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