Auctionata
The business, the turning points, and the decisions behind them.
01 / WHAT IT BUILT
What the company did
Auctionata hosted live-streamed auctions for art and luxury collectibles, accepting bids remotely and in the studio.
02 / Auctionata FAILURE REASONS
Failure reasons
Auctionata's decline began in March 2016, when co-founder and former CEO Alexander Zacke and board members were accused of illegally bidding on the auction house's own items — trade violations that destroyed its IPO prospects. Independent evaluations of auction results then suggested the house was making very few direct sales, despite having raised over $130 million from investors including Earlybird, HV Holtzbrinck Ventures, Hearst Ventures and Groupe Arnault. After salaries went unpaid for weeks, the company filed for preliminary insolvency in January 2017; unable to find new investors, it ceased operations at the end of February and liquidation proceedings began on March 1, 2017.
03 / EVENT HISTORY
Events in the structured record
- Company founded
Auctionata is founded in Berlin by Alexander Zacke and Georg Untersalmberger as an online auction house for art, luxury goods, antiques and collectibles, inventing the livestream auction; 250 art experts value and authenticate objects on commission.
- Merger and scandal
In May 2016, Auctionata merges with New York-based Paddle8; but in March 2016 co-founder Zacke is accused of bidding on the company's own auctions, derailing IPO plans amid doubts about actual sales.
- Insolvency and liquidation
In January 2017, Auctionata files for preliminary insolvency after weeks of unpaid salaries. On February 28, 2017 it ceases its German operations; liquidation proceedings begin March 1, 2017, most of the 170 Berlin staff are terminated including CEO Thomas Hesse, while Paddle8 and ValueMyStuff are sold to investors and continue independently.
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
In January 2017, Auctionata files for preliminary insolvency after not paying salaries for weeks, and begins looking for new investors to keep itself afloat.
- 02
On February 28, 2017, the company announces it will cease operations: sufficient funds for maintaining the business could not be found.
- 03
Liquidation proceedings begin on March 1, 2017 under administrator Christian von Brockdorff; the majority of the 170 Berlin employees are terminated, including CEO Thomas Hesse; the subsidiaries Paddle8 (US) and ValueMyStuff (UK) are sold to investors and continue operating independently.