German equity crowdfunding platform Seedmatch has responded to inquiries regarding a company that was crowdfunded on their platform back in June of 2o12. Larovo, an online buying guide, raised € 100,000 from 181 investors. Seedmatch, the largest equity crowdfunding platform in Germany, has always prided their company on their transparency and ethical approach in their operations. Everyone understands the risky nature of investing in startups and Seedmatch has gone out of their way to maintain communication with investors and other stakeholders. As questions regarding Larova mounted, Seedmatch decided to reach out to Larovo to clarify the company’s status.
In a communication with the company in question, Ulrich Glemnitz, the founder and CEO of Larovo, responded to Seedmatch’s inquiries stating;
“…that the Larovo GmbH is NOT insolvent. There are enough resources there to get business continuance. Once on the status of Larovo something changes and we can communicate facts to the public or to, we will do so naturally.”
The startups listing on the Seedmatch platform are expected to regularly provide reports on the status of their company to their investors. For investors this means they have access to information that at times may be confidential. Seematch has pointed out that releasing some information may impact sensitive negotiations between companies and investors. This is something that may have occurred with Larovo.
To quote Seedmatch;
“An early reporting by the media or by other means could weaken the bargaining position of startups”
Transparency between owners and operators is always a requirement, but their are times when confidence may be required. Seedmatch has asked their investors to respect and understand this process when a situation demands – for the benefit of all.