Berlin-based service broker Twago is insolvent – at least for now – with media reports suggesting the company’s troubles may be due to a freeze on the accounts of an investor.
The Berlin-Charlottenburg District Court issued a public notice of the insolvency at the end of March, and appointed a Berlin law firm as preliminary insolvency administrator.
Twago press contact Stefanie Kahls confirmed business at the company is carrying on as usual. All employees are still working and there is “no effect for the providers or the customers, which is very good and we’re very happy about it”.
The company is secured by the German government for at least the next three months, and is actively seeking new investment. “We’ve been in contact with lots of potential investors even before we got in this situation,” Kahls said. Current meetings are “well on track”. She was unable to comment on the reasons for the company’s insolvency.
Stalled growth – what’s next?
German news site Gründerszene (part of Vertical Media, the parent company of VentureVillage) reports rumours that the accounts of one of Twago’s investors may be on hold due to a tax audit, which may have cut off the Berlin startup’s access to funding.
Gunnar Berning, Maria Lindinger and Thomas Jajeh co-founded Twago in 2009. The company offers a platform – available in English, Italian, Spanish and German – to outsource projects that require non-location bound skills, such as web programming, graphic design, market research and translation.
Big names Zalando and Scout24 are among those to advertise on the platform, which promises access to about 140,000 experts from 177 countries. In March, Twago scooped a major IT innovation award at Hannover’s CeBIT trade fair.
The company’s investors reportedly include a group of Frankfurt-based private bankers, who came on board in 2010 after the company posted up to 40 per cent monthly growth.
Will Twago secure the funding it needs to continue growing – and trading?
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