Investors suffered $10M loss
The Situation
- Promising start-up raised $10M+ Series B at $US50M+ pre-money
- Conventional due diligence detected no material risks
- After investment, EverEdge was asked to evaluate intangible assets
The Client
Board of Directors – Software Start-up
Outcome
- EverEdge conducted interviews within the company, which revealed that the company did not own its fundamental software code as it had been developed by the CTO at previous employer (a competitor)
Result
Investors suffered $10M loss