Floobs Files For Bankruptcy

I got a call from Kai Lemmetty, one of the co-founders of Floobs, that they are filing for bankruptcy either today or tomorrow. Not a very pleasant call to get by any means, as they've been one of the most passionate guys in the ecosystem and been doing a lot of good for the startup scene itself by helping out with organising and live streaming events. The simple reason behind the bankruptcy is that their sales did not ramp up quickly enough to support their current burn rate.

Kai Lemmetty told me that they were almost ready to close their angel round before Christmas, but then things went bottom up. They had a group of angel investors together with a government organisation, all ready to invest into them until one of the parties involved pulled out. This collapsed the whole deal and inevitably sent them a big nudge towards bankruptcy.

Floobs had been putting together a lot of different concepts to capitalise their platform and the sales had picked up relatively nicely, but not by enough. They had signed up with a lot of different football clubs especially in Spain.

Kai Lemmetty told me also that they've been putting a lot of effort into making sure the downshift goes smoothly for all parties involved - especially for their clients, but employees as well. They're finalising plans on how people can get their videos from the service before they shut down. Also, they're negotiating with other companies and parties on how to support their clients in Spain and not leave anyone in trouble with their product.

There's no certain date on the shutdown of the service itself, but we'll keep you updated as things move forward.

Definitely not an easy thing to do in your career, but as I've been saying to many people - bankruptcies are more natural in the startup ecosystem than success cases. It's just something people seem to forget all together. Nevertheless, with bankruptcies being talked about and covered in the light they deserve - they should become more acceptable in the startup ecosystem.

Kai Lemmetty and Joonas Pekkanen haven't disclosed any future plans yet, but I'm sure they'll be back sometime in the future after they've caught their breath and took some time to hit back with new energy.

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Ville Vesterinen January 21, 2010

Was hell of a ride, ay? Kudos to Kaitsu and Joonas for all they did for the Finnish startup scene while at Floobs. You guys rocked! Can't wait to see what you decide to do next. Best of luck with whatever it might be.

Ville.

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jkaljundi January 21, 2010

Hopefully someone will take the service over. Technical infrastructure does not cost much nowadays. I really do hope there will be ways to restructure and keep the service alive.

If not, keep your heads up and don't worry too much, Kai & Joonas, just try again and succeed!

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Hendrik Morkel January 21, 2010

That's really sad news. I hope employees quickly find new jobs, and that Joonas and Kai find a place to bring in their entrepreneurial spirit.

Or, and that's my optimism, that this wakes up an angel or VC who says he's going to jump in - Now thats what I'd call a happy end!

However it goes, best of success to all involved.

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Video startup Floobs to file for bankruptcy, January 21, 2010

[...] regional tech blog ArcticStartup has confirmed the news with the founders, who cite sales of their B2B product not matching their current burn [...]

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Tommi Rissanen, January 21, 2010

Very sorry to hear these news. Best of luck for Kai, Joonas and the rest of the team! You have done great things in the Finnish startup-scene and this is will hopefully lead into something new!

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Tomi Po, January 21, 2010

Well, these things happen. Always sad, maybe years "thrown away", but it is always better to crash and burn than slow painful death into oblivion.

It's the experience that doesn't get lost. It is still in the people and now they are free to try something else. Whatever that is - good luck with it!

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Osma Ahvenlampi, January 21, 2010

I'm sad to hear about it, but as you say, it's a natural part of the startup cycle, and a possibility for us all. Good luck to all of the team at Floobs!

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Tuomas Toivonen January 21, 2010

Sad news. As others have noted, Kai and Joonas have done a lot for the Finnish startup ecosystem, through Floobs and their other activities (like eg, the SDG sessions and bootstrapping Slush). Thanks, and looking forward for your next act!

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Kristoffer Lawson January 21, 2010

I too am sorry to see the Floobs story end this way. The guys will be greatly missed, so I hope they stay around the startup scene and pop round to Helsinki events. Plus I think it would be really good to hear some of the lessons you guys learnt along the way.

Hope your next startup isn't too far away.

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Floobsin Pekkanen ja Lemmetty: hyvä maku tästä jäi – Vierityspalkki.fi, January 21, 2010

[...] Nettivideopalvelu Floobs lopettaa ja yhtiö haetaan konkurssin. Floobs Files For Bankruptcy, uutisoi asian ensimmäisenä Arctic Startup-blogi. [...]

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Kenneth Falck, January 21, 2010

Tsemppiä to Floobs guys, I'm convinced they will come up with some new cool stuff in the future.

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Igor Burattini, January 21, 2010

Wow, a while ago they changed the whole site design, partnered with Spanish football clubs and it was growing more and more.

Sad news that the problem was the lack of funding to support more sales and growth. Sorry to see this kind on news here..... I wish all the best to Kai and Joonas in their next venture!

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Boston bankruptcy attorney, January 21, 2010

Sad to see this go. I went on here a few times to watch some videos.

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Hannu Makarainen, January 21, 2010

Sad news. Also sad news for the whole Finnish startup ecosystem.

Sitten kun taas löytyy kovaa maata jalkojen alta, niin uutta putkeen vaan.

Arcticstartup, thanks for gentile reporting.

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joonashjelt January 21, 2010

Sad news, sorry to hear this.. Thanks Kai and Joonas for sharing this in a very open fashion - very good for the nordic ecosystem.

Good luck to both of you and best wishes to everyone at Floobs!

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Netti-tv -palvelu Floobs konkurssiin | Digilelut, January 22, 2010

[...] netti-tv ja webcast-palvelu Floobs on hakeutunut konkurssiin. Kolme vuotta vanha Floobsin tarkoitus oli aloittaa kuluttajille suunnattu netti-tv -palvelu, mutta [...]

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Tommi Lehtonen January 22, 2010

I like the proverb that taking a risk is easier than carrying one, and lots of credits to Floobs for doing both!

All the best for the entire Floobs team, experience from start-up projects is what the Finnish scene needs and you can't get any without venturing.

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Richard von Kaufmann, January 22, 2010

Kai and Joonas exude positivity and fought this particular battle with great spirit. There are many new battles to be won and if you're not prepared to fail you will never achieve anything remarkable.

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Livetunnel, January 22, 2010

Kai and Jona can contact me. Perhaps there could still be hope to revive floobs. I could teach them a thing or two on financing live streaming and they too could teach me a thing or two. They shouldn't have file for bankrupcy just like that. There is always a way to cut cost and manage finances.

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Livetunnel.com, January 22, 2010

Kai and Jonas can contact me. Perhaps there could still be hope to revive floobs. I could teach them a thing or two on financing live streaming and they too could teach me a thing or two. They shouldn't have file for bankrupcy just like that. There is always a way to cut cost and manage finances.

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Inboksi » Blog Archive » Mikä on digiyrittäjän vastuu?, January 22, 2010

[...] videopalvelu Floobs on menossa konkkaan. Olen monesti miettinyt sitä pitäisi tälläisillä yrittäjillä olla jotain virallisia [...]

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PuhujainKulma #143: Nörttit mängivad televiisorit | PuhujainKulma - viikottainen paneelikeskustelupodcast teknologiasta, January 24, 2010

[...] Floobs lopettaa [...]

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Mark Sorsa-Leslie January 25, 2010

Sorry to hear this...you guys have worked so hard to move things forward and you have a great service. I know you will step up to something great. Good luck for the future!

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Hessu, January 27, 2010

Sorry to hear this :-/ but big thank's to you guys for the great service and innovation. I was an avid user of your service and will miss it greatly.

It is always sad when the sh*t hits the fan and reality in the face. First mover disadvantage is unnecessarily hard.

Wishing you all the best for the future. I believe that you guys will come up with something great and be stronger and better than ever. Rock on!