Social betting games developer Crowdpark is insolvent, less than a year after raising €4 million in Series B funding from Target Partners and Earlybird.
Crowdpark, founded by Martin Frindt, Ingo Hinterding and Christoph Jenke in 2009, uses unique “dynamic betting” technology to allow real-time bidding in social games. Unlike traditional gambling, every bid affects odds in real time and there’s no real money payout – avoiding legal issues.
The game suite so far includes Facebook apps Bet Tycoon, Pet Vegas (right), Euro 2012 favourite 90Live and AnteUp, a clean-looking game that lets you bet your friends anything on anything (riffing on the same theme as fellow Berliners Klash). In October last year, Bet Tycoon claimed half a million active monthly users, making it the most popular social betting game on Facebook.
The company, which has offices in San Fran and Berlin, is a long-standing and vocal supporter of the Berlin startup scene – just last week co-sponsoring the Berlin Geekettes meetup at Google.
Temporary glitch or long-term problem?
Crowdpark were unable to comment on the insolvency, filed in July, with co-founder Frindt (right) saying only that business continues as usual and that there is “more than one option” on the table for the young company.
There’s no official word on reasons for the financial troubles. A quick look at AppData suggests user numbers for Bet Tycoon at least have slipped – now at just 20,000 monthly active users. Bet Tycoon, Pet Vegas and 90Live together attract more than 275,300 monthly active users.
Bouncing back from insolvency is not unheard of in Berlin. Twago filed for insolvency in April, according to media reports, due to a temporary freeze on the accounts of an investor and secured €2.25 million from a new investor in June. Personal solar power platform Changers went bust then reformed as Blacksquared GmbH and is now planning a relaunch in Europe and Japan.
Will Crowdpark do the same? With a unique idea, patent-pending technology, significant early traction and over 40 employees, we’re hoping this is just a temporary glitch.