Spot Runner’s woes continue post layoffs, faces investor lawsuit
The startup that aims to revolutionize the way the average TV spot is create, bought and placed has had a rough go of late. After raising over $100 million and having a couple good years of growth the company is slowed down like everything else in this economy.
Once totaling around 500 employees the company has gone through three rounds of layoffs, latest round back in March, the company now has slimmed down to somewhere around the 200 person range. Controlling their burn rate and hitting revenue targets isn’t the only thing that will be keeping their founders up at night as they are now facing a lawsuit by the firm WPP who is one of their investors.
Miffed at a clause in the investment contract that states Spot Runner must disclose stock sale to other share holders WPP is seeking $13 million is damages plus legal fees. This is not what the company needs to be dealing with right now as they hunker down and try to focus.
The company will be fighting the lawsuit but getting into legal battles with one of your investors is the last thing you want to deal with while you are trying to build a winning startup during these trying times.
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