Jeff.com, a Spanish startup that offers laundry, beauty, and fitness services through an app, has declared bankruptcy due to its inability to secure a €90 million funding round and non-payment of employees for nine months. The company, which was founded in 2015, had raised €50 million in funding prior to its bankruptcy.
The news of Jeff.com’s bankruptcy has sent shockwaves through the Spanish startup community. The company was seen as one of the most promising startups in the country, with a valuation of €1 billion at its peak. However, the company’s financial troubles began to surface in late 2020 when it failed to secure the €90 million funding round it needed to continue operating.
According to reports, Jeff.com’s financial troubles were exacerbated by the COVID-19 pandemic, which led to a decline in demand for its services. The company was also facing stiff competition from other startups in the same space, such as Glovo and Deliveroo.
In addition to its financial troubles, Jeff.com has also been accused of not paying its employees for nine months. The company’s employees have been protesting outside its offices in Madrid and Barcelona, demanding their unpaid wages. The company has reportedly owed its employees a total of €4 million.
The news of Jeff.com’s bankruptcy is a reminder of the risks associated with investing in startups. While startups can offer high returns on investment, they are also highly risky and can fail at any time. Investors need to be aware of these risks and do their due diligence before investing in any startup.
The bankruptcy of Jeff.com is also a reminder of the importance of paying employees on time. Startups often struggle with cash flow and may delay payments to employees in order to keep the business running. However, this can lead to legal and reputational issues, as well as demotivate employees and harm the company’s culture.
In conclusion, the bankruptcy of Jeff.com is a cautionary tale for startups and investors alike. While the startup world can be exciting and full of potential, it is also highly risky and requires careful planning and execution. Startups need to be mindful of their cash flow and pay their employees on time, while investors need to do their due diligence and be aware of the risks associated with investing in startups.
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- Source: Plato Data Intelligence.