CloudMine
The business, the turning points, and the decisions behind them.
01 / WHAT IT BUILT
What the company did
CloudMine was a Philadelphia health IT startup founded in 2011 by Brendan McCorkle and co-founders out of a University of Pennsylvania business modeling class. It began as a mobile backend-as-a-service provider and pivoted to healthcare, building the Connected Health Cloud, a HIPAA-compliant platform that let hospitals, pharma companies and payers build and manage digital health applications. Customers included Thomas Jefferson University Hospitals and the American Heart Association.
02 / CloudMine FAILURE REASONS
Failure reasons
Despite $16.5 million in venture capital and recognition as a 2017 Forrester leader in the enterprise health cloud market, CloudMine defaulted on a $1.8 million loan from Comerica Bank, which seized its operating accounts. The board concluded it could not close funding through alternative sources, laid off its remaining 11 staffers, and filed for Chapter 7 bankruptcy on November 5, 2018, with total debt of about $6.2 million. The company shut down entirely.
03 / EVENT HISTORY
Events in the structured record
- Bankruptcy
CloudMine entered bankruptcy.
04 / CONTEMPORARY REBUILD ASSESSMENT
Difficulty of rebuilding this project today
Material for this section is being gathered and checked. It will appear here once ready.
Overall assessment: Not completed
05 / CAUSAL CHAIN
How the factors connect
- 01
Raised $16.5 million, including a $5 million Series A in 2015 led by Safeguard Scientifics, with backing from Dreamit Ventures, MentorTech Ventures, Robin Hood Ventures, Mid-Atlantic Angel Group and Ben Franklin Technology Partners.
- 02
After defaulting on a $1.8 million Comerica bank loan and seeing its operating account swept, the board concluded no other financing was available.
- 03
On November 5, 2018 the company filed for Chapter 7 bankruptcy in the U.S. Bankruptcy Court for the Eastern District of Pennsylvania (case 18-17341), reporting about $6.2 million in total debt, and ceased operations entirely.
- 04
No audited loss figure was publicly disclosed; the $6.2 million was total debt, not a loss.