Earlier this year, we announced an $11.15 million strategic fundraise. At the time, we had every reason to believe that the funds committed to the round would be wired. Developments in the time since the announcement have proven otherwise.
Our largest investor in the round, the CSA Evolution VC Fund, committed $5 million, nearly half of the raise. We had a signed subscription doc in-hand, and their LPs were blue chip firms that have impeccable reputations in the business. In the months that have since passed, though, those LPs backed out and the investor was unable to meet its obligation.
Over the past few months, we explored a number of avenues and potential solutions to get the promised investment in the door. In fact, the firm’s principal recently made an investment from his own personal funds. That said, with the time that has now passed, we have decided for now to pursue alternative funding sources, including additional investors.
It pains me to have to write this letter, but transparency is crucial and we want to be open about the sequence of events that has transpired to bring us to this point. Thankfully, we are already talking to a handful of prominent investors who may be willing to step in and fill this gap, and are eager to move past this challenge.
Crypto winter is a time for building, and that’s what we intend to do.
-Leah Wald, co-founder and CEO