Caastle, a startup, which was launched in 2011 as a Plus clothing subscription service, and later became a coinization platform for clothing sellers, is in the face of financial difficulties, the company confirmed TechCrunch after Axios report.
Referring to the letter from the management board, Axios announced that the company is almost absent, the general director of Christine Hunsicker gave up the role of general director and management, and the company engaged law enforcement agencies to look at the alleged improper financial proceedings.
The company also confirmed TechCrunch that it survived all its employees.
“The Council is deeply disappointed with the procedure that has led to this moment. Our direct emphasis is placed on the company’s challenges, supporting our employees and maintaining the value of our technology and business operations. We bend that we must temporarily hurry our employees, but we think that it is best to position the company to effectively recover from the current situation,” said the company in the postal statement e -mail after corporations.
Caastle collected over USD 530 million in total, and the last round was collected in 2019 at USD 43 million, it is estimated at the Pitchbook.
In this letter also cited by PuckThe Council claims that Hunsicker misled at least some investors of the company with financial results in addition to the capital and overdue shares of the company, including two “falsified” audit opinions.
Both Axios and Puck informed that days before leaving Hunsicker she left the funds and claimed about the company’s healthy funds.
Axios noted that if the board’s allegations led to fraud against the founder, it might be one of the biggest such cases.
Last week, Charlie Javice, founding father of the Student Loan Applications Frank, who was purchased by JPMorgan for $ 175 million, was found guilty of fraud. The bank claimed that Javice had an overstated number of shoppers. But the variety of investments in Caastle is three times higher.
Although this may occasionally not be a typical impression of closing the startup, the experts told Techcrunch that 2025 is on the right track to be one other brutal 12 months for failed startups.