Dot.com networking group First Tuesday is back on the market six months after being bought for an estimated $50m (£36m) - and could be sold for about £2m.

Yazam, the Israeli incubator that bought First Tuesday in July, has decided to withdraw from its European operations after falling into financial difficulties.

It is likely to put a "for sale" sign on First Tuesday, where it is expected to cut jobs.

Yazam paid about £2m of the First Tuesday purchase price in cash, and the rest in shares. It is said to be keen to recoup at least the cash element of its outlay from any buyer.

Susan Kisch and Steve Carlson, organisers of the Zurich and Budapest First Tuesday events respectively, are understood to have expressed an interest in buying the group. David Jacobson, a Chicago-based franchisee, is also thought to have talked to Yazam about a deal.

The decline in the value of the group that redefined the way aspiring entrepreneurs went about raising money and building contacts underlines how few dot.com start-ups are still attracting venture capital money.

With an estimated 100,000 members worldwide it is thought that First Tuesday will continue in some form or another. "The network is too big to simply shut down," said a First Tuesday source. "Whatever the state of the stock markets, people in the new economy will still continue to want to gather and exchange ideas."

A statement from First Tuesday yesterday confirmed that "immediate cost reductions" were to be implemented after a Yazam board meeting on Monday. John Browning, the only one of the four co-founders remaining at First Tuesday, is expected to leave the day-to-day management of the company, although he will continue to help organise London events.

Nick Denton and Adam Gold, two other co-founders now based in Silicon Valley, have had little input since the sale to Yazam.

Julie Meyer, the fourth and highest profile co-founder quit the group earlier this year after disagreeing with the sale. She now runs a venture firm called Ariadne Capital and despite speculation, is not thought to be preparing a buy-out bid for First Tuesday.

First Tuesday started two years ago as a drinks party in a Soho bar, organised by the four friends who were intent on bringing a bit of Silicon Valley-style networking to London's fledgling internet sector.

As the dot.com bubble inflated, First Tuesday mushroomed in size and holds events in 85 countries, generating revenues from sponsorship and matchmaking fees. The lack of funding being raised at the moment means the latter revenue stream has started to dry up.