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The number of Israeli Internet startups keeps growing, but not all make it. the Israeli startup Raw Sugar is one that evidently didn't.

Raw Sugars purpose was to develop online systems to save and disseminate lists of favorite sites. But in recent months it has gradually let all its workers go, apparently because it ran out of resources.

The founders say they are in the process of selling the company or part of its technological assets.

Founded in 2004, Raw Sugar did not manage to obtain venture backing, and had to rely on its founders' resources, and some funding from private investors.

Its site enabled surfers to save and tag their favorite sites, much like the U.S.-based website del.icio.us does. With the startup's development, though, surfers could also share their lists.

Raw Sugar also offered a search engine for site owners, based on tags collected by surfers. The engine enabled search by gradually limiting the field, through choosing tags.

Meanwhile the company's website remains up and running, and usable. But the founders say its demise is a matter of months.