Evaluating only Jumio (First Bankruptcy)’s profile at its peak — without knowing the outcome — the model ranked Unit economics as the #1 likely cause. Documented cause: Fraud.
Key Events Timeline
FOUNDING
Daniel Mattes founds Jumio in Palo Alto, building camera-based ID verification.
FUNDING
Raises $25M Series B with Eduardo Saverin among investors.
FRAUD EXPOSURE
SEC and DOJ open investigation into CEO Mattes for alleged $14.5M embezzlement.
Jumio, founded by Daniel Mattes in 2010, raised over $32M from investors including Eduardo Saverin. The company offered real-time ID verification via camera. In 2015 the SEC and DOJ began investigating CEO Daniel Mattes for allegedly embezzling approximately $14.5M in company funds for personal use, including luxury cars and real estate. In April 2016 Jumio filed for Chapter 11 bankruptcy. Mattes later pled guilty to wire fraud and was sentenced in 2018. The company was acquired out of bankruptcy by Centana Growth Partners.
Lesson
“Board oversight and financial controls must be enforced even at founder-led high-growth companies.”