Auctionata Paddle8, a Germany-based online auctioneer that has raised more than $130m from investors including media group Hearst’s investment arm, Hearst Ventures, is closing down after failing to raise necessary funding.
The company was formed in May 2016 through the merger of Auctionata, which specialised in vintage luxury items for European customers, and Paddle 8, which generally listed more contemporary and art-based items.
Auctionata had received $88m in funding from Hearst Ventures, E.ventures, MCI Management, Holtzbrinck Ventures, Bright Capital, Kreos Capital, Yuan Capital, Earlybird, Kite Ventures, Raffay Group, TA Ventures and Ren Invest.
Paddle8 had raised $44m from backers including Founder Collective, Mousse Partners, Skate Capital and various art industry-based angel investors.
The company entered insolvency proceedings in January with the intention of splitting off Paddle8 through a buyout that would have been supported by US-based management.
However, despite cutting its headcount and selling off UK-based ValueMyStuff and the US branch of Paddle8, Auctionata Paddle8 has now announced it will be winding down and liquidating its assets.
Preliminary insolvency administrator Christian von Brockdorff said: “All necessary steps were taken. In the end, however, investors did not come together to make sufficient funds available to operate the insolvent German company as a going concern.”