Staff at London music startup Crowdmix say they haven't been paid again
This is the second month there have been payment problems at the startup. Business Insider previously reported that the May salary was sent out late. That news came as CEO Ian Roberts, who has worked at the company since 2014, abruptly left.
Two salaried employees said that Crowdmix has already pushed back the date for wages to be paid this month, but it still hasn't happened.
The company has more than 150 staff members, including a mixture of salaried and freelance workers. One freelance employee Business Insider spoke to said their invoice for several weeks of work hasn't been paid, despite being sent to the company earlier this month. Crowdmix did not respond to multiple requests for comment.
Crowdmix hinted in the past that a new round of funding is coming soon that will solve its money problems. "Crowdmix is currently raising a fourth round of investment, which is expected to be completed in the coming days," it said on June 10. But Business Insider understands that the funding round has not been completed, and that is a major reason why wages haven't yet been paid out.
It's possible that Crowdmix could go back to existing investors and ask for more money to pay its wages. We reported earlier this month that billionaire property tycoon Nick Candy has loaned the company £6.5 million.
Crowdmix is building a social network that's focused around music. Fans can create communities, known as "crowds," about their tastes, and see which songs are most popular. The app also lets people stream songs directly through the platform.
But the company has expanded extremely quickly, growing to 150 employees before its app is even available to the public. It is also a long way from actually making any money.
The company laid off 8% of staff in April as it slimmed down its marketing department.