Scooter sharing company Lime is collecting the assets of an exhausted electric skateboard startup. The budge learned. In the government database, on April 15, more than five of Boost's core patents were transferred to Lime's holding company, and two former employees said Lime was trying to acquire Boost's intellectual property by the end of 2019.
The contract began after Yamaha's offer to take over through Boost earlier this year. Two former employees familiar with the transaction said they were granted anonymity due to the private contract they signed with the startup.
Shortly after this article was released, Boost co-founder and ex-CEO Sanjay Dastoor (who left the company more than a year ago) told Boost Subreddit, “Lime bought all of the company's assets and IP. As far as I can tell, this includes design files, software and code, diagnostics, parts and test equipment. ” He believes Boosted will "be at some point in some form of bankruptcy protection," but it will not be officially disbanded. "Lime also appears to own everything at Boost Headquarters in Mountain View, including building access," he said.
I'm not sure if Lime will be with Boost or have a handful of employees to handle outstanding customer service requests. According to LinkedIn, four other Boosted employees have joined Lime, including mechanical design engineers who drive product and vehicle architecture design for Boosted's scooters.
According to the JPO's documents and the former, the patent was technically assigned to Lime by an LLC founded by investment company Structural Capital, and has borrowed Boosted money in the second half of 2019, and has since secured many new assets as collateral. employee. Former employees say rescue capital has shaken Boost's finances.
Boosted CEO Jeff Russakow and the remaining co-founder John Ulmen did not respond to requests for comment. A spokesman for Lime said the company was not ready to discuss what was going on and declined to comment.
Signs of Boosted's problems began to appear earlier this year after the company lost payments to its suppliers and complained about customer service and left for other employees. One of them, Boosted's vice president of engineering, left the company and became Lime's vice president of hardware.
together The budge The first reported in February, Boosted, after developing its own $ 1,600 electric scooter, faced financial problems after a delay in launch and was hit by Trump's trade war tariffs. The company also spent a lot of money raised to expand to more than 30 countries around the world.
Boost announced that in early March most employees were fired, looking for buyers, and since then it has been silent. This caused some of the current and potential customers to fall into Limbo, and many customers were waiting for orders to be completed or skateboards repaired.
Meanwhile, a community centered on Boosted, which began as one of Kickstarter's early and biggest success stories, turned to a crowdsourcing solution to fix and fix boards.
Dastoor wrote to Reddit, "I'm trying to find a way to help," and encourages customers to contact Lime. “To continue supporting our products, including board parts or software diagnostic testing and debugging, [Lime’s] You will need cooperation and help. ”
It's currently unclear what's going on with Boost's debt in millions of employees. Some of the suppliers that Boost has spurred are now taking the company to court as well. A supply chain consulting firm filed a lawsuit in early March in Santa Clara County High Court for more than $ 55,000 in unpaid bills. And on March 30, Boost filed a lawsuit in the Utah District Court by creative agency Underbelly.
Lime is said to have fired 14% of its employees in early January and left the 12 markets, considering more layoffs as the new coronavirus epidemic disrupted service worldwide. Bloomberg In March, Lime reported that it started with $ 50 million in cash this year.
UPDATE on April 16 at 10:30 PM (ET): This story was updated by former boost CEO Sanjay Dastoor with new information from the Reddit post.