That a funding deal was pulled after it was agreed in principle reflects the battering endured by Australia’s technology industry for months. Major venture capital funds were also forced to cut the value of their stake in themost valuable local tech startup,Canva,by billions of dollars.
Eucalyptus had a non-binding agreement for a loan from an investor who scrapped the deal this month.
Eucalyptus chief executive Tim Doyle confirmed the layoffs but would not name the investment firm involved in the “rough” situation.
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“The norm has been that signed term sheets[for investments] get done,” Doyle said,adding that he understood norms shifted with the market.
“But it is still a pretty painful thing to go through for a company,and particularly when you go through a multi-month[due diligence] process for it to be pulled out towards the end of that process,” he said.
“It forces really quick and often painful moves on behalf of the company. And that’s kind of what you’re seeing from us.”