The situation associated with covid restrictions has another startup victim. Service terminated Genster.cz and its operating company Top Button went into liquidation. In previous years, risky investors have joined the project, amortizing their deposits. Vojta Roček a Presto Ventures Přemysl Rubeš together they provided funds in excess of ten million crowns.
“We sent about 12 million crowns to Genster, five million for myself, and the decision was not easy,” says Roček for Lupa. “It all hurts when the startup ends, but it’s just venture capital, the risk is greater.”
The year he co-founded and subsequently sold the software company Stories to the American Workday, entered Genster as an angel investor. In the autumn of 2019, the Czech fund Presto Ventures joined the investment. Investors at Top Button had a minority, with a majority of 59.27 controlled by the co-founder Michaela Kloudová and the rest the second co-founder Ryan Cole.
Covid and other issues
“Since the spring of 2020, there has been uncertainty between the two investors about the sustainability of growth and the functionality of the business model, which could not be eliminated by the summer,” describes Kloudová.
In July last year, investors decided not to provide additional funds. “Of course, we were not enthusiastic about the investors’ decision and we would have preferred to find out more in advance, but this is simply a startup life. Not everything is ideal, “Kloudová continues.
According to Rokek, Genster did not achieve the results that were set for further funding. According to him, these goals were “set softly” and should not be anything ambitious. The company did not publish its financial results and the financial statements are not available.
Genster was a service that delivered men packages of clothes tailored to them by stylists. They did not have to go to the shops and wonder if the pieces of clothing matched. Earlier last year, the company said it had sent out about 1,400 packages and that 60 percent of customers were returning.
The covid also affected the development of the project, especially the first wave. “People almost completely stopped buying clothes because they didn’t go out,” says Roček. “And that was only the first wave, then two more came.” Genster became quite interestingly unique, as one of the few e-commerce projects failed to grow during pandemic restrictions and the transfer of people to the Internet.
—
“Genster subsequently tried to change the business model, but its further financing could not be obtained, and therefore it was decided to liquidate the company,” the company continues. The closure of the project is still ongoing and is not legally terminated.
Covid also caused the collapse of other Czech fashion brands. List of messages informedthat Le Premier negotiates rescue with creditors. He also invested in the company Tomáš Čuprwho wrote off his investment. Covid is also blamed for the fall of the Pietro Filipi and Kara brands, but critical voices talking especially about guilt Michal Mička and its risky bond game.
–
