Metigy, an adtech startup offering AI-powered marketing solutions for small businesses, has been placed in the hands of administrators, with the loss of 75 jobs.
The collapse comes just 20 months after the company raised $20 million in a Series B round led by Cygnet Capital amid ambitions to go global.
Sydney insolvency and restructuring firm Cathro & Partners reportedly gained control of the company on Friday, July 29.
Metigy’s Twitter account was optimistic Monday morning, perhaps before the company’s 75 employees were aware of the news.
New week, new month, what are your tips to stay calm on Monday? 🚀📓☕
— Metigy (@metigy) July 31, 2022
Metigy was founded in 2015 by former We Are Social executives David Fairfull and Johnson Lin with the goal of giving small businesses access to the same data and strategic insights that power some of the world’s largest marketing teams.
The platform provides real-time data from social and digital advertising channels in easy-to-understand insights and recommendations.
Fairfull, the company’s CEO, said the time is raising his $20 million: “Half of all small businesses fail within the first two years, and marketing — or lack of effective marketing — is always one of the top reasons. .”
Metigy’s backers included Regal Funds Management, OC Funds, Five V Venture Capital and Thorney, who contributed to the early investments of Cygnet, CP Ventures and We Are Social.
The reasons behind Metigy’s demise are unknown. As late as May, the company’s PR agency asked business leaders for comment. The PR agency did not respond to Startup Daily’s request for comment.
Metigy did not respond to Startup Daily’s request for comment after the site’s chatbot asked for more details.
Cathro & Partners did not respond to Startup Daily’s request for comment.
While the Metigy website still says “We’re hiring!” many of the company’s employees took to LinkedIn to express their sadness and shock at the company’s sudden passing and to begin the hunt for new jobs.
Metigy’s product team leader Akhila Bhatt said she didn’t expect to write weeks ago that the company was under management.
“We have all been informed employees today and we are shocked to say the least,” she wrote.
“It’s heartbreaking that our journey was cut short so early, when I could see we’ve turned a corner with the product in the past few months and what’s to come in the coming months.”
Attorney Myra Beal, who left law firm Herbert Smith Freehills less than 12 months ago to become Metigy’s Chief of Staff and General Counsel, said: “My heart breaks for the 75 amazing and talented employees who have been let down today. If you are a technology company that is looking for great talent, please contact me directly to discuss further, I can arrange introductions for members of our team and provide further information if required.”
Clare Riley, who joined Metigy 20 months ago, was about to take on a new role leading the company’s branding and communications.
“Today I am unemployed along with my 75 brilliant colleagues. We are quite shocked,” she wrote.
“It’s not because we didn’t care enough or because we did poorly or because market conditions weren’t in our favor – and that will always be the hardest thing to deal with when you work as hard as we do.
“I am extremely grateful to have met this group of people that I now call friends and I am so sad that we can’t continue on this roller coaster together. My heart is always in startup land, no matter how difficult it gets. It is an experience that teaches us so much about ourselves and I will always choose it.”
Metigy’s slide in administration follows in the footsteps of Sydney proptech startup Yabonza, which was placed in the hands of administrators last week after running out of capital, had raised more than $15 million in five years.