Cork-based AI startup Altada says it has laid off US employees and furloughed Irish staff as it seeks bridge funding to “stabilize” the company.
The company, co-founded by entrepreneurs Allan Beechinor and Niamh Parker, says “market conditions” are now meaning a delay in a proposed Series A funding round that the founders had hoped would raise between €50 million and €100 million .
Last year it raised €11.5 million from venture capital firms Elkstone and Rocktop Partners, with Enterprise Ireland also contributing.
“Due to unforeseen market conditions impacting our customers and having to postpone our planned Series A round to later in the year, we were forced to let go [of] our US-based team and are implementing a temporary layoff for a number of Irish employees,” the company said in a statement.
“We recognize this is a very challenging time for our incredible people. This is a temporary situation and we are working on funding solutions that will bring our entire team back within six weeks. This bridging round will allow us to deliver projects for 2022… [and] will also allow us to work with our creditors who have supported us through this very difficult time.”
Altada, which employs more than 70 people in offices across Europe and the US, declined to answer further questions about its bridge financing efforts or current trading conditions. However, its co-founders took to social media yesterday to defend the company and clashed with critics on Twitter.
“The founders and management team are confident in Altada’s future,” the company said in its statement. “We are working closely with our shareholders and advisors to secure funding and stabilize the company.”
Altada, whose founders were shortlisted for this year’s Irish Company of the Year by Ernst & Young, provides artificial intelligence products and names several clients in the financial services sector.
The healthcare, travel, security and environmental technology sectors will also be targeted.
It describes its core technology as “ethical and responsible use of AI, manifested by its privacy-by-design principle that protects personal data”.
In its statement, the company says it recently licensed some of its technology to a US customer “for a seven-figure sum.” It also claims to have made advances on patents that it hopes will improve its position.
https://www.independent.ie/business/technology/altada-lays-off-us-staff-and-furloughs-irish-workers-as-it-seeks-bridging-finance-to-stabilise-firm-41903542.html Altada is laying off US employees and furloughing Irish workers as it seeks bridge funding to “stabilize” the company