Creative tech firm Talenthouse was on the verge of collapse last month. Now it says it has secured an investor lifeline to continue restructuring.
The firm matches artists with design briefs for major brands, connecting clients with brands like Netflix, Coca-Cola, Nike, and more. But a report from The Guardian last month revealed the UK firm was facing legal action from its creditors and likely laid off most of its workforce. Another report from the Observer showed how contributors to Talenthouse projects had not been compensated for their work on those projects completed months earlier.
“Some had worked on high-profile briefs, including designing posters, ad campaigns and social media posts for clients such as DreamWorks, Nationwide and Snapchat,” The Guardian’s report revealed. “At the time, Talenthouse Co-Founder Roman Scharf apologized and said the firm was ‘working on a long-term robust solution’ that would benefit creatives and be announced soon.”
That robust solution included restructuring and the closure of the UK entity through which artists were contracted. Now the parent entity, Talenthouse AG says it has secured a new investor lifeline to keep itself afloat.
“On Friday night, Garage Italia Finance Sarl, Luxembourg (Garage Italia: Investor), disclosed to Talenthouse AG that it entered into agreements regarding the purchase of almost 32% voting rights in the company (therefrom approximately 5% through a convertible loan). Garage Italia is the new investor announced by Talenthouse AG on May 14, 2023.”
“As mentioned previously, the company is in a restructuring phase, to address its critical financial situation. Talenthouse G, the investor, and the company’s auditors are working on solutions how to best proceed, including the previously announced capital increase.”
Talenthouse was founded in 2000 and has since burned through $80 million and leaving many contractors unpaid. “All I get from Talenthouse is ‘we’re doing what we can,’” said one contractor from the Philippines, who is owed £3,200 by the now-dissolved UK entity. “It’s all automated responses. No one really seems to care.”