In February, TechCabal reported that the Nigeria-focused crypto startup, Fluidcoins was bought to Bitfinex after it failed to boost funding. At the time of the sale, there have been conflicting stories about whether or not the startup’s investors knew in regards to the sale. At the time, one nameless investor informed us that the choice to promote Fluidcoins was made by the founder with out exterior enter. Joe Kinvi, one other investor representing the funding collective, Hoaq, disputed that model of occasions. That uncertainty led to questions on whether or not investors acquired any money from the sale.
Per confidential paperwork seen by TechCabal, Fluidcoins raised $50,000 from two syndicates and $70,000 from 10 angel investors. At the time of the sale, it was unclear whether or not investors would get any money back. TechCabal can now solely report that weeks after the sale, all investors acquired back to the negotiation desk and had been provided some portion of their preliminary funding. This publication can verify that at the least one investor accepted the supply to stroll away from the take care of some portion of their preliminary funding.
One supply near the scenario stated that new conversations had been held with Fluidcoins and Bitfinex after the sale. It is unclear what the small print of these conversations had been, however we now know that they concerned talks the place investors had been provided some returns versus strolling away with nothing. Fluidcoins raised $180,000 within the final 18 months of its life, and the phrases of its sale to Bitfinex weren’t made public.
It is a optimistic finish to a scenario that appeared more likely to spiral out of management in keeping with preliminary stories. While investors perceive the dangers of investing in startups and know that generally they will lose complete investments, there at the moment are extra conversations in regards to the responsibility of founders to maintain investors knowledgeable and act above board. In March, some unnamed investors in Kloud commerce started authorized motion in opposition to the corporate’s founder following allegations of misappropriation of funds in October 2022.
Additionally, the sale of Fluidcoins could symbolize a slightly higher final result for investors than different choices. Last week, Lazerpay, one other crypto startup working in Nigeria, additionally introduced its impending closure. With no acquisition provides on the desk, Lazerpay’s investors will probably stroll away with nothing, as soon as once more highlighting some of the much less glamorous elements of startup investing.
…. to be continued
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