JellyCloud, one of the largest ad networks that delivers pop up ads, has shut down. About 36 people were laid off and Valleywag reports that liquidators repossessed their furniture over the weekend. The company had raised $50 million of which $11.5 million was raised just a few months ago. The company bragged about raising “smart money” from US Venture Partners, SoftBank, Sand Hill Capital, and Crosslink Capital.

JellyCloud was previously known as Claria and as Gator before that. Their technology would install spyware on a user’s browser and watch what they were viewing online and behavioral target ads around content viewed or searched for. According to VentureBeat, Google now is the closest to doing what the original Gator was so hated for: Google is aggressively installing its toolbar on every Dell computer in an effort to target advertising to individual users.

There are an estimated 400 ad networks out there and venture capitalists like Accel and Shasta are heavily invested in the space. The deteriorating economy and softening ad market will mean hard times for many ad networks for a long time.