Energy startup Faraday Grid was burning through $2.4 million a month, according to a source close to the company.
According to a statement by administrators Grant Thornton, Faraday Grid needed significantly more money to continue operating and"was unable to continue its activities in its existing structure." Grant Thornton said 45 employees lost their jobs and it is now looking for a buyer.Faraday Grid's goal was to replace electricity transformers with new technology that would boost the grid's capacity to handle renewable energy.
According to the source, people were lured in by the promise of cool technology that might help tackle climate change and Scobie's fundraising claims. They also thought an investor as high-profile as Adam Neumann would have done deep due diligence on the company. Scobie was evenThe reality was that the firm was haemorrhaging cash and that Scobie would be ousted a month later.
According to the source and public filings, the board comprised Scobie; cofounder and CTO Matthew Williams; and investor David Rogers, CEO of clean energy group Amp. Ilan Stern, who runs investments for Neumann's family office, 166 2nd Financial Services, also had a presence on the board, the source said, although he is not listed on Faraday Grid's leadership page.
. They also made a number of the new and incoming executives redundant, meaning some people were fired before they even started the job, the source said.From left to right: Faraday Grid CTO Matthew Williams, Scottish MP Paul Wheelhouse, CEO Andrew Scobie, and CMO Jacqui Porch.Another discovery that made new joiners uneasy was the fact that Scobie and another Faraday Grid employee, Jacqui Porch, were in a relationship, the source said.
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