Stricken music startup Crowdmix has confirmed the appointment of administrators for its three companies: Crowdmix Ltd, Crowdmix Holdings and Crowdmix Management.
For all three, the administrators will be Paul Appleton and Paul Cooper of Guernsey-based company David Rubin & Partners, with creditors awaiting the next steps in the administration process. Meanwhile, in the aftermath of the company’s collapse, Fred Destin of VC firm Accel Partners has been blogging about the recent events, filing Crowdmix alongside non-music startup Powa Technologies as firms “whose failure appears to have been managed disgracefully and that give us all in the startup industry a bad name”. Destin was blunt in his criticism of Crowdmix specifically: “Crowdmix built an incredibly over-featured service that never launched. It spent its money on artist endorsements and lavish offices. It over-hired massively in a bid to build a credible global music competitor from day one. But when things sound too good to be true, they usually are,” he wrote. Destin also outlined five sensible rules for startups: don’t make grandiose claims you can’t back up and promises you can’t keep; don’t miss payroll; don’t continue to trade when insolvent; ship product early; and wait until you’re making money before getting a smart office.