It has not been a good month for Ashton Kutcher’s investment portfolio.
Anticipated funding for the startup did not close, and the company’s CEO Jase Wilson told employees to stop working, according to Bloomberg.
“As of tonight, we are not in a position to compensate you,” Wilson reportedly said in a memo to employees.
In 2017, the company raised $25 million in a funding round led co-led by 8VC and Emerson Collective. The firm also counts Kutcher’s Sound Ventures as an early investor.
You can learn more about dozens of companies looking to take over the fintech space at the Benzinga Global Fintech Awards in New York City on Nov. 19.
The company has said it is shifting away from municipal bonds as a focus and into fiber broadband networks.
Neighborly said in July it planned to layoff 25% of its employees as part of the shift, Bloomberg said.
Wilson told the publication Monday that it was necessary to halt payroll to reorganize, but said he does not foresee the company closing.
The CEO declined to comment to Bloomberg on the possibility of bankruptcy.
'Smoke And Mirrors': CNBC Guests Struggle To Find Anything Positive To Say About WeWork
Join Neighborly At This Year's Fintech Awards And Learn How Public Works Can Work For Investors
Photo by TechCrunch via Wikimedia.
See more from Benzinga
- Professional Fighters League Offers Equal Pay For Athletes: 'It Was No Question'
- Houston Rockets, NBA Face Backlash In China After GM Tweets About Hong Kong Protests
- Analysts React To PepsiCo's Q3 Beat
© 2019 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.