Based out of Amsterdam, Wizenoze, a developer of an online education platform, has been declared bankrupt by the court in Amsterdam on 23-12-2024.
Lack of funding, generative AI, and more
According to co-founder Diane Janknegt, Wizenoze was doing well and needed funding for product development. They secured an agreement with an investor, but when they tried to finalise it at the notary, the payment didn’t arrive.
“Last summer, we had a signed agreement with an investor. But when we went to the notary to finalise it, the payment did not come,” she says.
Janknegt also revealed that this left her startup in a difficult position, stating that the financier’s withdrawal caused major issues, forcing them to focus on salvaging what they could.
However, Wizenoze was not yet profitable and as a result, a search for another investor would take time.
“And there simply was none. If you have a signed term sheet, other parties will not wait for you to come forward again,” she says.
Additionally, the rise of generative AI, like ChatGPT, has also impacted Wizenoze, which has always integrated AI into its products.
While the company has already adopted the latest AI technologies, the arrival of generative AI presents both opportunities and challenges for investors.
“Investors understand its great possibilities, but no one knows how quickly AI will continue to develop,’ she adds.
Struggled to achieve break-even
Over the past few months, Janknegt and her team have been downsizing their business; however, this effort was insufficient to achieve break-even.
Last week, she filed for suspension of payments for Wizenoze, which was subsequently converted into bankruptcy the following Friday.
Based in Amsterdam, WizeNoze aims to make information on the internet easier to find and understand for children, by building technology which curates and delivers reliable, appropriate and age-relevant content at a child’s specific reading level.
Currently, more than 80 per cent of the Dutch primary schools have access to WizeNoze’s technology.
To date, the company has raised around €8M in funding in several rounds.
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