Innovative e-radiator startup Nerdalize files for bankruptcy: Another painful end in Dutch startup ecosystem

Innovative e-radiator startup Nerdalize files for bankruptcy: Another painful end in Dutch startup ecosystem

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It is common to see many startups fail due to various reasons such as shortage of capital, lack of market demands and lack of understanding and enthusiasm in the team. Recently, we saw a list of startups that went bankrupt in 2018.

In a recent development, Nerdalize, a tech startup that used computer servers for heating houses has filed for bankruptcy. Earlier this year, the Delft startup won the Crowdfunding Award. Now, the company is bankrupt, claims RTL citing the register of the Chamber of Commerce.

Founded in 2013 by Boaz Leupe, Mathijs de Meijer and Florian Schneider, Nerdalize developed a way to use the computer servers for heating of houses. As per the co-founder Leupe, it is a win-win situation for the startup as it placed servers with private individuals instead of using expensive data centers. It also offered cheap storage services for the companies.

Raised €750k via crowdfunding

Until the end of 2016, Eneco, the energy company had confidence in the startup and delivered servers dubbed eRadiator. Also, there were other investors offering up to €850,000 in the company. In spring 2017, the company raised another €750,000 via a crowdfunding campaign. Also, it added 20 more employees to the team.

Causes of bankruptcy aren’t certain

But in less than a year of receiving the Crowdfunding Award, the company is bankrupt. Curator Annemiek te Kiefte has settled for the bankruptcy. However, there is no information regarding the causes of bankruptcy. But there are speculations that the demand for the heating stove was not sufficient.

Accounts to €882k loss

As per the annual report of the startup, it is said that the company has suffered a huge loss of minimum €882,000 in 2017. By late 2017, the equity was over 8 tonnes negative and by the end of 2019, the startup will have to repay part of the €2 million in swap shares and loans.

According to the report, Nerdalize recognises there could doubt about the company’s further operations. It adds the founders are positive about the future of Delft startup. The report notes, “However, the management is of the opinion that from a proven interest of third parties, based on the innovative and green character of the company, a sustainable continuation of the business execution is not impossible after December 2019.”

Stay tuned to Silicon Canals for more updates in the tech startup world.

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