MOD Devices announces Insolvency and ‘Reboot’
MOD Devices – creators of an open hardware effects platform – has announced that it is currently insolvent and is planning a ‘reboot’.
They list losses of more than €1M from founders, another €1M from Investors, €287k from the Seedmatch crowd, and €177k from backers.
They attribute their problems to a combination of the global supply chain issues that have been affecting many manufacturers and a failed crowdsourcing campaign:
“Dear MOD community members
I am sad to announce that MOD Devices GmbH has reached the end of its line.
This is the result of a two-year crisis that started with the COVID impacts on our supply chain in Q2/2020, and the snowball effect of the cash flow disruption triggered by the failure of the Crowdcube campaign in Q4/2020.
During these last 24 months, the founders and shareholders have bridged the finances multiple times in failed attempts to get back on track. But the private cash from shareholders only is not sufficient and, with the worsening of the general economy and growing fear from financial institutions and investors, the remaining financing options have all retreated, forcing me to file the company for insolvency.
It is not the end of MOD though. Not yet.
Part of the founders, team and shareholders believe very much in the project and a reboot is being put in place, with the fundraising for a fresh company.”
Details on their financial issues, reboot plans and how this effects supporters that have not received their units are available at their forum.
