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Singapore : SINGAPORE Company with $39million in VENTURE CAPITAL closes down

August 13, 2014

Bubbly, a Singapore-based social network which got US$39 million from prominent venture capital companies Sequoia Capital, Singtel Innov8, JAFCO Asia, and others, is liquidating after a few purchase agreements failed to work out, sources told.

Bubbly had undergone due diligence many times over the past nine months in anticipation of purchases. Twice, the agreement fell through with Chinese-listed firms due to problems on their end that caused their stock prices to crash. The firm had three more offers and accepted the largest one by another venture capital-backed company.

The due diligence procedure dragged on for two months. But as the merger was about to take place after Bubbly laid off its management team and restructured the firm in order to conclude the agreement, the buyer tried to lower Bubbly s price by 90 percent because it assumed the startup s investors no longer had any more options.

Bubbly's investors decided they would rather liquidate the company and take the remaining cash out of the business than to own stock in an unethical company that would do something like this. Thus, Bubbly is currently in the process of liquidating. CEO Thomas Clayton has moved on and is actively helping his staff to move on too, says a person with knowledge of the situation.

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Source: TendersInfo (India)

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