Under-fire UK voice-to-text firm SpinVox, which we revealed last week was finalising a new funding injection, has in fact secured those new funds thought to be £5.5 million, as suppliers and staff complain of unpaid bills and expenses.
The company told paidContent:UK: “Existing investors from the last round of funding have made available more funds to allow the company to continue its growth.” It did not quantify the sum, which tops up its earlier $200 million funding. We originally thought the figure was £5.5 million, but now believe it to be much more. Recent press raising questions about the company’s finances and its part-machine/part-human voicemail transcription service nearly jeopardized the new funding. The arrival of the cash coincided with staff receiving their salaries on Friday, within a programmed six-day-late window that the company hopes is a temporary measure.
Some of the cash is likely to be swallowed up quickly. Financial Mail reports three suppliers are owed a total £320,000, with one filing three county court complaints, a call centre operator filing in the High Court and SpinVox avoiding a winding up petition by paying an outstanding £20,000 bill. SpinVox tells paidContent:UK: “We remain in ongoing discussion with our suppliers.” And some staff continue to claim expenses have not been paid since April. Up to 70 percent of staff last month accepted an offer to receive July and August salaries in stock rather than cash, as we first revealed on July 13.
The company raised $100 million in March 2008 from GLG (SEO: 066570) Partners, Goldman Sachs, BlueMountain and Toscafund Asset Management. CEO Christina Domecq, in a two-part interview with paidContent:UK, said company finances are being pressured by its suppliers paying it late and by the demands of a strong growth following Latin America client wins that will make SpinVox cashflow-positive within 90 days.