Crowdmix, the social music startup that at one point was flush with venture capital funding, had 160 employees and offices in London and Los Angeles — but still no launched app — has informed its staff that the company will be going into administration and winding down operations.
Business Insider reports that the company had sought an emergency infusion of funding over the weekend in order to continue, but the deal fell through. It has raised over £14 million ($18.5 million) in venture capital funding, though earlier reports put that number much higher. The company currently has 130 employees, whose June wages have reportedly been delayed.
In June, co-founder and CEO Ian Roberts left the London-based business amid reports of financial issues. At the time, the startup said it was days away from completing a fourth round of funding that would "ensure operational growth" and enable remaining executives to "take the business forward." Those execs included co-founder Gareth Ingham, who took over as CEO, and Rob Wells, the former Universal Music digital head who joined as COO and CEO of the Americas in October 2015.
In the App Store, Crowdmix describes itself as a "place where like-minded individuals can find new people" and create "crowds" for sharing content and more through music. The App, which was given an invite-only launch in May, features a feed of posts from both users and influencers, including artists, and streams music via third-party services like Spotify.
Recently, the startup announced that the app would allow users to connect via a range of topics, not just music. "Music is the fire starter," said former consultant Ted Mico in an interview with Pivotl. "We chose music because it’s by far the most ubiquitous media form in the world. It’s a great common currency to start the conversation with, but it’s only a conversation starter. It’s not a music social network at all."