A US Trustee has called for the liquidation of troubled fintech company Synapse through Chapter 7 bankruptcy, citing 'gross mismanagement.' This move comes as Synapse's Chapter 11 bankruptcy proceedings are deemed insufficient to address the company's financial issues. Synapse’s banking dreams have come to an end, as reported by TechCrunch on May 16, 2024. Federal regulators have not intervened to assist the thousands of fintech customers who have lost access to their funds during Synapse’s bankruptcy. Synapse management remains in place to oversee the wind-down process.
Federal regulators aren’t coming to rescue the thousands of fintech customers who’ve lost access to their money during Synapse’s bankruptcy. For now, Synapse management is still in place for the wind-down. Great explanatory reporting by @emilymason00: https://t.co/dBDAJC8eNA https://t.co/SCFfVwI76I
Late stage startups = valuations and round volume have fallen in tandem since 2022. Early stage = valuations effectively flat, round volume down a lot. Why? What’s the floor underneath seed valuations right now? https://t.co/0OJkWJixNC
VCs when you tell them you’re bootstrapping https://t.co/z2PzrODT8g
Founders if you don’t diligence your investors you should! ☠️ Don’t know what to ask? I got you. 😉 Here are some questions I would be asking if getting a term sheet…👇 1. What percentage of your term sheets get accepted? 2. What is the average company valuation in your… https://t.co/3Ojt5BO7EC
This is a great nugget from @theinformation, @nmasc_ and co! However, Lacework failed as a business is because it's built on Snowflake $SNOW and the core Snowflake offering does not allow for cost efficient low latency required to run a cyber product. https://t.co/CWCO0QuyGy https://t.co/hlB4yUtj83
Do VCs really pull signed term sheets from founders? Yes -- and it happened to me. But usually, there's a reason: https://t.co/iVVB0Vgr4e
VC funds offer terms that are best for their funds. It's become a standardized, retail product. Founders should instead ask for terms - capital, dilution, governance - that are best for their companies. Sometimes what is best for the company doesn't fit into that VC box.
Just caught up with a VC with quite a large portfolio The takeaway? It's brutal out there for companies under $5M ARR with limited runway trying to sell He's seen two acquisition term sheets get pulled in the 11th hour as buyers walk away because of "internal reasons" ☹️ For…
A few VCs that ghosted us during our raise then turned around and back-channeled with others to try and figure out the terms of our raise. Nothing inherently wrong about that but behavior like this founders will hear about this, they will note it, and they will share this with… https://t.co/ucrSry9lPo
What I’ve heard in the Series A market: $1.5M ARR is floor. Really getting excited at $3-4M ARR. A lot of smaller bridge rounds bc founders aren’t hitting metrics and don’t want to take a lower valuation.
Saw two SaaS startups: Startup A Raised: $3M Current ARR: $250k Gross Margin: 30% Team: 24 Asking: $10M Startup B Raised: bootstrapped Current ARR: $3.4M Gross Margin: 80% Team: 2 Asking: $1M A is a hype machine. B is struggling to find investors. When will investors learn?
NEW: How did Lacework go from one of the most promising startups in cybersecurity ($8b) to aborted deal talks with a rival (at <$200m)? @nmasc_ and I dug into what happened, and it's a cautionary tale of reckless spending and management dysfunction: https://t.co/2yHmr322du
VC’s are back to trying fast follow rounds (even outside of AI), but founders are saying no this time (From our LP update) https://t.co/0kq36Ltx3U
ICYMI: A US Trustee wants troubled fintech Synapse to be liquidated via Chapter 7 bankruptcy, cites ‘gross mismanagement’ https://t.co/WJ5NIrKNWJ via @techcrunch
Just heard a VC walk up to and grill a founder about the terms of a round they just closed for about 3 minutes straight. Then he was like “so what is it you guys do?”
The Series A cliff is real! There’s a huge backlog of seed stage companies with nice traction - just not $3m ARR + 30% MOM growth kinda traction. Wonder why more people aren’t speaking about this? It’s a huge bummer and something’s gotta give.
A US trustee wants troubled fintech Synapse to be liquidated via Chapter 7 bankruptcy, cites ‘gross mismanagement’ https://t.co/CxGGAGfdTS
Synapse’s banking dreams just burst like a bubble, @BayAreaWriter writes on @TechCrunch. The US Trustee wants to turn their Chapter 11 bankruptcy into a Chapter 7 liquidation, citing "gross mismanagement." #FintechFail https://t.co/VzLAa9ast1