It is a bit unclear from the techcruch article why loosecubes died. Do you know of any better writeup?

I suspect this idea will only work as a “life-style” business. I can’t see how you can sustain the profits to support investors. The positives are the costs are low enough that it should be possible to bootstrap and the market small enough that the VCs will stay away.

The write ups that came out during their demise were all trash and typical tech reporting. They did not spend all, or even close to all, of the money.

I do know what happened being close on the outside, but not behind the closed doors. It seemed to be a strong urge to advocate for co-working vs. creating valid VC business model. So, yes, I agree it may be a better fit for a lifestyle business.