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July 4, 2013 02:49 am GMT
This morning, PandoDaily reported that Los Angeles-based eCommerce startup, BeachMint, had finally tanked after a long, “slow unraveling.” The problem, however, is that this doesn’t exactly mesh with reality. The reporter, Michael Carney, says that “multiple sources” informed him that the startup’s board had essentially fired CEO Josh Berman and President Diego Berdakin, and, on top of that, had asked them to return their remaining $20 million (of the $73.5 million total) to their investors. Were that the case, it would be a clear indication of BeachMint’s impending demise. However, TechCrunch has since spoken with Berdakin, Berman, NEA General Partner and BeachMint investor and board member Pete Sonsini and JewelMint Product Lead David Oh, who tell us that the reports of the company’s death have been greatly exaggerated. In a series of emails and conversations, the founders reported that, in fact, Berdakin and Berman remain 100 “percent committed to and focused on BeachMint” and at no time have been asked to step down by the company’s board of directors. Nor were they asked to return any of the money they’d raised. Sonsini says that the board is “completely behind the founders” and NEA, which is the largest stakeholder in BeachMint, has invested in each of the startup’s three financing rounds because the firm believes in the founders’ vision. Even if actualization of that roadmap takes time. So, in short: Everyone we’ve talked to at BeachMint says that these reports are completely untrue. In its report, Pando essentially speculates that BeachMint’s lack of traction and burn rate have forced the company into an overhaul reminiscent of the one that recently took place at fellow Los Angeles startup, Viddy, in which it recapitalized and gave back $18 million in funding to investors and reshuffled its board. The BeachMint President tells us, however, that the company has been laser-focused on limiting its burn rate, still has “north of the $20 million [in capital] that was reported” left in the bank and has plenty of runway left. If there is any truth to the story, Sonsini says, it’s that the company has been talking to strategic partners about fundraising. Whether that’s smart or not, well, the truth would appear to lie in the middle. In the big picture, subscription commerce is beginning to enter a period of consolidation similar to the one that the Daily Deal space went through after its gold rush. As
Original Link: http://feedproxy.google.com/~r/Techcrunch/~3/oK37swmKFlc/
BeachMint Founder, President, And Investor Rebuke Report About The Startup's Implosion
This morning, PandoDaily reported that Los Angeles-based eCommerce startup, BeachMint, had finally tanked after a long, “slow unraveling.” The problem, however, is that this doesn’t exactly mesh with reality. The reporter, Michael Carney, says that “multiple sources” informed him that the startup’s board had essentially fired CEO Josh Berman and President Diego Berdakin, and, on top of that, had asked them to return their remaining $20 million (of the $73.5 million total) to their investors. Were that the case, it would be a clear indication of BeachMint’s impending demise. However, TechCrunch has since spoken with Berdakin, Berman, NEA General Partner and BeachMint investor and board member Pete Sonsini and JewelMint Product Lead David Oh, who tell us that the reports of the company’s death have been greatly exaggerated. In a series of emails and conversations, the founders reported that, in fact, Berdakin and Berman remain 100 “percent committed to and focused on BeachMint” and at no time have been asked to step down by the company’s board of directors. Nor were they asked to return any of the money they’d raised. Sonsini says that the board is “completely behind the founders” and NEA, which is the largest stakeholder in BeachMint, has invested in each of the startup’s three financing rounds because the firm believes in the founders’ vision. Even if actualization of that roadmap takes time. So, in short: Everyone we’ve talked to at BeachMint says that these reports are completely untrue. In its report, Pando essentially speculates that BeachMint’s lack of traction and burn rate have forced the company into an overhaul reminiscent of the one that recently took place at fellow Los Angeles startup, Viddy, in which it recapitalized and gave back $18 million in funding to investors and reshuffled its board. The BeachMint President tells us, however, that the company has been laser-focused on limiting its burn rate, still has “north of the $20 million [in capital] that was reported” left in the bank and has plenty of runway left. If there is any truth to the story, Sonsini says, it’s that the company has been talking to strategic partners about fundraising. Whether that’s smart or not, well, the truth would appear to lie in the middle. In the big picture, subscription commerce is beginning to enter a period of consolidation similar to the one that the Daily Deal space went through after its gold rush. AsOriginal Link: http://feedproxy.google.com/~r/Techcrunch/~3/oK37swmKFlc/
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