Founder leaves as Ve lands cash lifeline

Cash-strapped London start-up Ve Interactive has eased fears over its future as major investors forked out to keep the business going after its founder relinquished control.

A consortium of investors led by multi-millionaire entrepreneur Doug Barrowman’s venture capital firm Aston Ventures made “an immediate cash injection”, the advertising technology company said. However, Ve did not say how much or at what valuation.

The consortium also committed to raising “a significant sum” in the coming weeks.

It comes as chief executive David Brown was replaced by Aston’s boss and former PokerStars director Morten Tonnesen, just days after Ve reportedly failed to pay staff.

"What he [Brown] felt and what we felt as investors was more operational experience was needed to take the business to the next level," Tonnesen told the Standard.

The loss-making company’s last investment round valued it at $2.7 billion (£2.2 billion), making it a unicorn company — a tech start-up with a $1 billion-plus price tag.

Brown will continue as a “technology adviser” to Ve.

Chris Akers, the ex-Leeds United chief executive whose AIM-listed investment firm Concha has a small stake in Ve, said he backed the move. “I supported the shareholder group that pushed David Brown out,” he wrote on Twitter.