Jakarta, CNBC Indonesia – Many giant startups have collapsed even though they have succeeded in reaching valuations of hundreds of trillions of rupiah through fundraising with dozens to dozens of investors.
These bankrupt startups come from various industries, ranging from crypto, media, co-working and others. They have even raised funding of at least US$ 1 billion (Rp. 15 trillion).
Summarized CNBC Indonesia From various sources, here are the startup giants from the US that have gone bankrupt.
1. WeWork
WeWork this week officially filed for bankruptcy status. The co-working startup from the US was in debt and suffered large losses. Several parties familiar with the matter say WeWork is considering filing a Chapter 11 petition in New Jersey.
Earlier on Tuesday (31/10), WeWork signed an agreement with creditors to temporarily postpone payments on some of its debts, with the grace period almost over.
 Adam Neumann, co-founder and CEO of WeWork. (AP Photo/Mark Lennihan/File Photo) |
The company had long-term net debt of US$2.9 billion at the end of June and long-term leases of more than US$13 billion.
The news of the bankruptcy filing is not surprising. The company, which had a valuation of around US$ 47 billion (Rp. 733 trillion) in 2019, has been struggling to survive for a long time.
2. Vice Media
Vice Media filed for bankruptcy last May, despite having raised more than US$1.6 billion from investors.
The company is looking for a buyer, and will probably find one to avoid bankruptcy. More than five companies have expressed interest in acquiring Vice. However, that chance is growing slim, said one of the people familiar with the potential bankruptcy.
3. Intarcia
Boston-based Intarcia has raised US$1.98 billion from venture capitalists, including Fidelity and NEA. It was even the biotechnology startup with the highest value ever.
But the company never got FDA approval for its flagship product, a matchstick-sized implantable device for the treatment of Type II diabetes.
The company filed for bankruptcy protection in late 2020, and early last year threw in the towel after another FDA rejection.
4. FTX
FTX’s story is known for its rise to serving more than 1 million users, its valuation of US$ 32 billion (Rp. 500.83 trillion), and its collapse that rocked the crypto world.
The company, which operates cryptocurrency exchanges and crypto hedge funds, filed for bankruptcy in November last year after raising US$ 1.97 billion from well-known investors such as Sequoia Capital and Tom Brady.
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FTX cannot be separated from the charismatic charm of its founder, Sam Bankman-Fried. He is currently undergoing legal proceedings due to a fraud case at the problematic cryptocurrency exchange.
Bankman-Fried was charged with 13 criminal counts of fraud, conspiracy, violation of campaign finance laws, money laundering and bribery of foreign officials.
5. Katerra
Katerra is a construction technology startup in Silicon Valley that pretends to be successful, but there are a lot of bugs inside the company.
CEO Michael Marks, who previously led a large technology company and sat on a Fortune 500 board, provided false financial reports to his board of directors, after failing to meet projections.
Marks was banned in 2020, and the company filed for bankruptcy protection one year later. Katerra has even raised around US$1.44 billion from companies such as SoftBank and Khosla Ventures.
6. Quibi
The fledgling digital video company, led by Hollywood and Silicon Valley powerhouses Jeffrey Katzenberg and Meg Whitman, only survived six months after its launch in April 2020. The Quibi concept was a platform where creators could upload short video series content for monetization.
Along the way, this company spent some of the US$ 1.75 billion in funds obtained from investors such as Disney, NBCUniversal, and WarnerMedia from AT&T.
7. Celsius Network
Celsius was part of the storm that kicked off winter in the crypto industry last year. They filed for bankruptcy as coin prices declined.
New Jersey-based Celsius has raised about $1.04 billion from investors such as WestCap and Canadian pension fund CDPQ. The company positioned its bankruptcy as a restructuring. It is reported that Celsius will be acquired by NovaWulf Digital Management.
8. Theranos
The blood testing company Theranos was once worth almost US$11 billion (Rp. 172 trillion). They have raised more than US$1 billion from investors including Rupert Murdoch, Tim Draper, Betsy DeVos, James Mattis, the Walton family, and the Cox family.
 Logo of blood testing specialist Theranos outside the company’s headquarters in Palo Alto, California, USA. (Andrej Sokolow/picture alliance via Getty Images) |
Theranos went bankrupt in 2018, laying off all remaining employees and returning what little money remained to creditors.
Elizabeth Holmes, the founder and former CEO, was found guilty in January of conspiracy and fraud against certain investors and sentenced to 11 years in prison.
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