Today KnC Group, one of Creandum’s portfolio companies, filed for bankruptcy. It was not an easy decision but given the circumstances, the right one.
Creandum started to look into bitcoin and the blockchain almost three years ago to map and source interesting investment opportunities.
After meeting with countless companies in the space, Creandum decided to invest into KnC Group as a bet on the future infrastructure of the Blockchain. In a move to dominate the future of payment processing, the company went from a provider of hardware to running big parts of the blockchain infrastructure themselves through a massive datacenter in Boden, Sweden.
Things went well, operations were scaled up significantly and KnC was considered one of the European leaders in the Blockchain space. However, the company recently encountered large technical issues and rapidly increasing competition from chinese infrastructure providers. This put KnC in a situation where the business no longer had critical mass and hence no longer could bear its overhead and invest in upcoming technology shifts.
As a consequence the company’s management and board have evaluated numerous options, yet with no viable alternatives left, decided to file for bankruptcy today.
Failing is hard and ruthless, yet it is sometimes inevitable when founders and investors reach for the stars.
Not succeeding is unfortunately a natural part of both venture capital and entrepreneurship. However rest assured, despite this, Creandum will continue to back outstanding entrepreneurs in the earliest stages and will not shy away from risk when meeting brave and bold founders with the ambition to change an industry.
Finally, we would like to thank the KnC founders, employees, all angel investors and our fellow VC investors at Accel for their faith and hard work.