This article was created with kind support from Startupdetector and its insolvency analysis tool.
When payment default affects a company, provisional insolvency administration is typically ordered before the actual proceedings begin (a guest contribution explains what to watch out for in this article). This serves to protect the debtor’s assets from adverse changes. The period of provisional insolvency is also used to find new investors or buyers before the actual proceedings begin. But this doesn’t always succeed.
Solutions for insolvent startups
The used car platform Instamotion, founded in 2015, had to report its insolvency in the second quarter of this year, with insolvency proceedings opening at the beginning of the third quarter. Shortly thereafter came the good news: Instamotion found a buyer in Czech online used car dealer Carvago, who took over the entire business operations including most of the employees.
And Insaas was also able to find a buyer: The developer of AI-based market research software focused on insurance and banking had to enter provisional insolvency in mid-March. In June, insolvency proceedings opened. In early August came the acquisition by Glomas Deutschland, a specialist in information management systems for standardized and highly specific requirements.
Holoride achieved a restart. The startup, which develops virtual reality entertainment for car passengers, applied for proceedings to open at the beginning of the third quarter, after already being under provisional insolvency administration since late April. Shortly thereafter, insufficiency of assets was also determined. But at the end of September came the breakthrough: The startup was able to transfer all its technologies and patents to the new Holoride Technologies Group based in Singapore. It was founded by Holoride investors Jing Xu and Tony Chen as well as Holoride founder Nils Wollny. The subsidiary Holoride Technologies Europe GmbH, based in Munich, continues operations.
There is no solution in the strict sense for the insolvency application from Neutron Star Systems. The startup offers high-temperature superconductor spacecraft systems, with an electrical propulsion system for spacecraft mobility in orbit serving as its flagship product. In May, the startup filed for provisional insolvency – but in July, the Munich district court rejected the application to open insolvency proceedings due to lack of assets.
Newly opened insolvency proceedings
Insolvency proceedings for Lodgea opened at the beginning of July. The software startup serves hotels, hotel chains and tourism organizations, but also airlines and travel agencies. Its solution is designed to support direct online marketing and provide accommodation providers with a simple booking and marketing solution, including AI components and marketing automation features. Attorney Michael Verken from the law firm Anchor Rechtsanwaltsgesellschaft was appointed as the insolvency administrator.
Rescue attempts for Dock Financial have been unsuccessful so far. The technology company offers customized financial solutions to various industries and supports the integration of financial features. Both the Dock Financial GmbH and its associated Dock Financial Capital GmbH declared provisional insolvency at the end of May. At the end of July, Dock Financial GmbH had to initiate insolvency proceedings. In September, Dock Financial Capital GmbH followed suit. Attorneys Ivo-Meinert Willrodt and Marlene Scheinert, both from Pluta Rechtsanwalts GmbH, were appointed as insolvency administrators.
Bad news also came in the third quarter for Straightlabs. The edtech Straightlabs offers gamified and virtual training environments and also worked with Meta. But in September, insolvency proceedings were opened due to inability to pay and over-indebtedness. Again, attorney Michael Verken from the law firm Anchor Rechtsanwaltsgesellschaft was appointed as the insolvency administrator.
New cases of provisional insolvency in the Munich scene
In the third quarter of the year, there were also two new cases of provisional insolvency. Insolvency affected Inveox in this quarter. The healthtech startup develops digital solutions for pathology laboratories. The Munich healthtech startup’s technology is designed to prevent unnecessary diagnostic errors. However, Inveox ran out of money in September, followed by filing for provisional insolvency. Attorney Marc-André Kuhne from the law firm Dkr Kuhne Dr. Raith Rechtsanwälte was appointed as provisional insolvency administrator. Inveox is not willing to give up in the face of developments and is actively seeking new investors.
Finally, Munich Composites also had to enter insolvency. The startup, founded in 2011, manufactures carbon fiber components. As recently as April this year, the TU München spinoff celebrated a success when it was able to sell its bicycle rim division, expanding production and expanding into the United States. However, the part of the company remaining in Putzbrunn is now facing financial difficulties: provisional insolvency was declared at the end of September, with attorney Dr. jur. Fabian Vielsäcker from the law firm Liebig Insolvenzverwaltung Restrukturierung appointed as insolvency administrator.
