Crowdmix’s “social network for music” enters administration after failing to pay vendors

Crowdmix’s newly launched social platform intended to drive music streaming follows April’s 8% staff layoffs with more uncertainty over their future.

The London based company launched, by invite only, in May after being founded and developed since 2014. It’s raised more than £14 million in funding but actually making money seems to have been their pitfall.

The startup has now revealed it’s going into administration, leaving their 130 employees uncertain about their future. The company also revealed to it’s staff that they won’t be receiving wages for June that had already been delayed until their announcement. The company were hoping to escape the sticky situation with some emergency funding over the weekend but that clearly fell through.

Staff were called into a meeting yesterday where they were told the bad news, caused by a failure to pay their vendors. According to Business Insider Crowdmix are now looking to sell however may only be able to sell their intellectual property.

The app was designed to connect music fans and get them talking about music as well as streaming music through the app. Their downfall was no doubt soft launching their app when it released earlier this year, making it available only to invitees by the company. It may have been for testing purposes but meant that very few people can use it and earn them money, and also lost any hype it had for it’s launch.

The company has also been accused of misusing funding, after laying off 8% of their staff earlier this year to save costs whilst accommodating “plush offices in London and Los Angeles.” The eventual fate of Crowdmix will probably become clear over the coming days.

Writing about music, listening to music, and occasionally playing music.

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