Former tech ‘unicorn’ Ve saved from collapse

One of London’s highest-profile start-ups, which collapsed into administration last night, has been rescued in a management buyout.

Ve Interactive, whose advertising technology was designed to help clients such as Liverpool FC boost online sales, went into administration after failing to raise cash.

But Ve said today that the new management team including chief executive Morten Tonnesen, brought in by Doug Barrowman’s venture capital firm Aston Ventures as part of last month’s rescue-funding deal, had bought the firm out.

A spokesman for Ve, which has almost 1000 employees, said: “The interim management team has successfully bought Ve Interactive out of administration.”

Ve said the move would “safeguard hundreds of jobs”, but hundreds of other job losses are expected.

Last month, it got an emergency cash injection from the Aston-led group, which slashed its valuation from £1.5 billion to £300 million. The deal meant it lost its “unicorn” status as a start-up with a price tag of more than $1 billion.

Founder David Brown left last month after Ve failed to pay staff.

Its collapse has echoes of Dan Wagner’s Powa, which went into administration last year after burning through £156 million.