Earlier this year, we covered The death Flexible workspace operator of Knotel.
The high-flying startup once announced that it had filed for bankruptcy and had assets Being achieved Investors and commercial real estate brokerage by Newmark Reported $ 70 million.
It was a tough fall for a company that had pegged at $ 1.6 billion just a year earlier.
It was difficult to precisely pinpoint the beginning of the end for Knotel, which raised about $ 560 million in funding. Some said the epidemic was a nail in Nototel’s coffin, while others said the epidemic was already in trouble, facing multiple lawsuits and expulsions.
Then this past weekend, Nottal co-founder Amol Sarve shed some more light on the situation – essentially publicly crushing Newmark, which in 2018 co-led the startup’s $ 70 million Series B.
In a letter he emailed to an unspecified group of people, Sarva explains that the company arrived at a rate of about $ 400mm in early 2020, which made gross profits, and even more than 2/3 of the revenue. Part retained. We can support customer continuity and work harmoniously with the landlord. “
He described Newmark as “a stray horse”, using bankruptcy to take control of Nototel with about $ 100 million of new capital. He said the process undermined important relationships and “hurt a lot of customers and partners.”
“I am very disappointed that this direction was pressed. This process made it clear to me that I would not choose to be part of the path for the new owners to move forward, ”said Sarva.
He further criticized Newmark, saying that the brokerage “hired a group of Adam Newman-era.” [sic] WeWork bros to move the company forward. “
Newmark had not yet responded to a request for comment at the time of writing. While it is safe to say that Sarva is bitter about the way he got out, it would be interesting to know at what point he came to this conclusion.
He said he was going back to the lab where anklet bells Originally, Knot was invented as co-founder / CEO.