…By Henry George for TDPel Media.
The collapse of Cervest deals a blow to London’s tech sector, which has already been grappling with layoffs, decreasing valuations, and a decline in investment.
Investors had been actively supporting AI firms following the rise in popularity of ChatGPT.
However, internal messages suggest that Cervest had been struggling to pay its staff, with salary delays dating back several months.
The company’s website and social media platforms advertised a webinar that was scheduled but did not take place.
Filings indicate that Bassi recently became a director of Earthena.ai, a newly founded company, alongside Cervest’s general counsel Raj Mahapatra.
Sale of Intellectual Property and Debt Settlement:
The administrators have managed to sell its intellectual property rights, providing some resolution to outstanding debts.
However, the incident serves as a reminder of the challenges faced by AI firms in securing funding and maintaining financial stability.