, 2022-11-28 20:53:26,
On November 22, alternative financing startup Pipe announced that its three co-founders were stepping down from their executive roles and that a search for a new, “veteran” CEO had commenced.
In an exclusive interview, co-founder and former co-CEO Harry Hurst told TechCrunch that the trio were “0-1 builders, not at-scale operators.” He said the company’s revenue was growing year-over-year and that the company had five years of runway.
Finding the right successor could take a while, however. For starters, Pipe — which has raised more than $300 million from investors since it was founded in 2019 — has just one outside board member in Peter Ackerson, a general partner at Fin Capital who himself became a VC just three years ago. Hurst and fellow founders Josh Mangel and Zain Allarakhia are the only other directors on the board.
More, detractors seem bent on raising questions about the way the business has been run. Since that article was published, several sources who wished to remain anonymous — including one investor who says he passed on investing in the startup in its early days — have said that they have “heard” that Pipe made roughly $80 million in loans to one or several crypto mining companies. The outfit or outfits have since gone out of business and the $80 million is believed to have been completely written off, said these individuals.
Asked about the allegations, a company spokesperson told TechCrunch that Pipe did not issue $80 million…
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