What’s Next for Crowdpark After Insolvency Filing?

What’s Next for Crowdpark After Insolvency Filing?

 

Crowdpark has filed for insolvency in a move which has come as a shock to most people in Berlin’s tech scene. The well-established social betting startup was seemingly riding high following the success of its Euro 2012 quiz game 90Live – and it has raised a total of $8 million, with $6 million of that coming in last year’s Series B round led by Target Partners and Earlybird.

But CEO Martin Frindt confirmed to Silicon Allee today that the company has filed for insolvency. He did, however, emphasize that operations were continuing as normal with no layoffs, and that Crowdpark had more than one option moving forward.

Like so many insolvency situations – especially amongst startups, which by definition sail closer to the wind in terms of paying the bills every month – Crowdpark’s was a surprise. Less than a week beforehand, Crowdpark, which was founded in 2009 by Frindt, Christoph Jenke and Ingo Hinterding, had sponsored a Berlin Geekettes event at Google’s HQ in the German capital.

And its lineup of games had also been becoming increasingly impressive, with Pet Vegas and AnteUp also added in recent months.

So perhaps the shockwaves should actually be interpreted as a positive sign. After all, a startup with an established and proven team and a strong product line in a sector estimated to be worth $6.2 billion this year could emerge from insolvency all the stronger for it.

For now, though, it’s all about getting through it. As we have said before, it would be a shame to see an established tech startup disappear for good.

About David Knight

David is co-founder and Editor-in-Chief of Silicon Allee. Originally from London, he has lived in Berlin for over seven years, having previously worked for news portals including Bild.de and Spiegel Online before helping to found Silicon Allee in 2011.

8 comments

  1. Strangely enough none of that is written on the Crowdpark newssite or their blog. I wonder why – since failing is (supposedly) almost a badge of honour in the startup community.

    According to a press release the $6 million came last October. How can they burn so much in less than a year?

    • Maybe the 6m was the “you might get it if you meet some milstones” Number. And one year later, the VC wants more shares because CP didn´t meet the numbers, the founders want the money but don´t like the downround….

      • I suppose these are just wild speculations and not insider knowledge ;)

        Either way – reports about such practices could be part of startup blogs more often. It would certainly help founders.

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