ScaleFactor Fails to Scale, Blames COVID-19

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Show Notes

• 09:59 – A Message from Founder and CEO Kurt Rathmann - ScaleFactor 
• 12:06 – Fintech Startup That Raised $100 Million From Investors Bessemer And Coatue Is Abruptly Shutting Down - Forbes
• 14:05 – ScaleFactor is shutting down after coronavirus craters sales – Austin Business Journal
• 16:58 – ScaleFactor Announces “2.020” Vision, Including Plans to Build Marketplace for On-Demand Financial Solutions – Business Wire
• 19:45 – Our early ScaleFactor speculations - Episode 70
• 20:36 – The Twenty Minute VC: Venture Capital | Startup Funding | The Pitch - 20VC: Raising $105m in Just 13 Months Over 3 Separate Rounds, The 5 Core Ways VCs Can Add Value & How Founders Can and Should Fully Leverage Their Cap Table with Kurt Rathmann, Founder & CEO @ ScaleFactor – The Twenty Minute VC 
• 29:16 – ScaleFactor: Our Response to the News - Acuity 
• 32:18 – Wirecard AG’s former chief executive officer was detained by Munich prosecutors – Accounting Today 
• 33:42 – Wirecard filed for bankruptcy this week – Wall Street Journal 
  • Backstory: Wirecard’s suspect accounting practices revealed – Financial Times
• 34:00 – Softbank sues E&Y over Wirecard - CNBC
• 38:36 – Nasdaq to suspend trading of Luckin Coffee shares from Monday - Reuters
• 39:12 – GE KPMG Auditor Swap: General Electric and KPMG Officially Call It Quits – Going Concern
• 40:38 – Intuit changes tech development focus, lays off 715 – Accounting Today 
• 44:45 ­– IRS sent $1.4B in stimulus checks to dead people, audit finds – Accounting Today
• 47:42 ­– PPP recipients can apply early for loan forgiveness, SBA says - Journal of Accountancy 
• 48:31 – SBA exempted lawmakers, federal officials from ethics rules in $660 billion loan program – Washington Post
• 52:39 – Mastercard to purchase open-banking company Finicity for $825 million – MarketWatch 
• 55:40 – Last week's Square discussion – Episode 180
• 56:35 – Are Intuit and Square dating? - Square

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Transcript

ADP has your back with Accountant Connect. Their award-winning multi-client payroll management and analytics platform is a remarkably effective tool for adding value to every client engagement. Stay tuned to hear more from our sponsor, ADP Accountant Connect, later in the episode.

Blake Oliver: [00:00:20] One of the questions I had immediately was where did all the money go? What happened to the $100 million? Because there's no way, with 100 employees, that they burned through $100 million in a year. Not possible.

David Leary: [00:00:32] That's a lot of money, but they got 1,000 clients. That's $100,000 per client. I texted somebody who is a leader at a Top-100 accounting firm, and I said, "Hey, can I buy your firm for $100 million?" I...