Misha Saul, a prominent investor at EVP’s Opportunities Fund, has gone silent following the collapse of StrongRoom AI, a medication management software company he invested in just eight months ago. The startup’s downfall came a mere two weeks after a funding round led by EVP valued it at $70 million. The situation unfolded when the EVP withdrew from StrongRoom AI’s $17 million funding round and took action regarding alleged financial discrepancies.
An EVP spokesperson stated, “EVP is deeply concerned about recent developments regarding one of its investment companies, and we have taken immediate action, including notifying law enforcement and pursuing all available avenues to recover the investment.”
StrongRoom AI, co-founded by Max Mito, Christopher Durre, and Kieran Start, had been celebrating its seventh anniversary and expressing gratitude for its team, partners, and community just months before the collapse. However, allegations from new backers quickly surfaced, casting doubt on the company’s future.
Investor reaction muted after StrongRoom collapse
The startup entered receivership after lead investor EVP requested the return of its funds, which StrongRoom AI refused. This led to the appointment of administrators from HLB Mann Judd and receivers from Walsh & Associates. EVP disclosed its lack of prior knowledge regarding the alleged financial mismanagement and indicated its commitment to collaborating with the police investigation.
Other investors, such as Michelin, expressed shock and dismay over EVP’s actions, criticizing the firm for not consulting other shareholders before taking drastic measures. The founders of StrongRoom AI have not responded to requests for comment, leaving the future of the startup uncertain as the legal battle unfolds. The crisis is a cautionary tale in the startup ecosystem, highlighting the complex relationship between innovative ventures and their financiers.
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