Funding reprieve for StrongRoom AI as administrators eye sale
Administrators for the troubled startup have secured an agreement allowing it to pay wages and maintain operations while they proceed with an urgent sale process.
Voluntary administrators of StrongRoom AI have secured a crucial funding agreement with venture capital fund EVP allowing it to maintain operations while conducting an urgent sale of the business, administrators announced today.
HLB Mann Judd late on Friday announced it had reached a funding agreement with EVP and the receiver that will ensure the troubled medtech startup can continue functioning as potential buyers circle.
StrongRoom AI, a medtech startup that develops software to replace paper-based methods of tracking prescription medicine use and distribution, has experienced a dramatic fall from grace.
In March, the company announced it had raised $17 million at a valuation near $70 million in a funding round led by EVP, only to collapse into voluntary administration by month's end after EVP alleged the company had understated its debts by over $4 million and was losing $800,000 monthly despite claims of profitability.
