How EVP flipped the script on the StrongRoom AI fiasco
Four months after an investment into a pharmacy software startup went sour, the Sydney venture capital firm has used a series of legal moves to salvage what looked like a total loss.
When EVP invested $10.4 million in StrongRoom AI in February through its Opportunities Master Fund, the venture capital firm believed it was backing the future of pharmacy software. But it didn't take long for the investment to turn sour.
Two weeks after StrongRoom announced that it had raised $17 million from EVP and Artesian Investments in a deal that valued it at nearly $70 million, EVP called in the cops to investigate the firm, and in a subsequent Federal Court lawsuit, accused the company of fraud.
The investment, led by EVP's head of Opportunities Fund Misha Saul, looked like a lost cause.
But four months later, following a series of sophisticated legal manoeuvres, EVP appears to have salvaged what initially looked like a total loss with no recovery prospects into a dramatic reversal of fortune.
