Internal examination in a startup company Come here, a diversified recruitment platform founded by Elite Raz, raised suspicions that the company had misreported its client numbers. According to assessments by many of the company’s senior managers and investors – among them the Insight and Target Global Fund and Udi Netzer – the company has fewer clients than you reported. Confronted with the results of the examination last week, Raz decided to step down as CEO and leave the company immediately. Today, several employees have been called to hearings, and the company continues to employ some senior managers who assist the investigation team. Raz did not respond to an approach from Globus.
Joonko has collected $35 million so far. Its most recent round was in September 2022, led by Insight Partners, at a valuation of $89 million, according to venture capital database PitchBook.
Sources close to the company say, based on the figures that have emerged in the investigation, that the funding round “probably shouldn’t have happened,” but they describe it by saying that the examination is still ongoing and that there may be other findings.
Junco’s board of directors said in a statement: “The company has recently noticed false advertising in the financial statements. In particular, the board of directors and several vice presidents of the company have lost confidence in the CEO’s ability to respond to repeated requests to incorporate and support an internal financial body for the company as part of its growth.” .
As a result, the board of directors and many senior managers opened an investigation into his performance, as a picture of rude and unethical behavior on the part of the CEO and fraudulent acts that caused harm to shareholders and the company emerged before the results of the investigation and left it of its own free will. The situation is currently being studied in an internal investigation, Further steps are being considered.”
Insight Partners stated: “Insight is proud to support and partner with entrepreneurs and teams in their growth stages, and has an unwavering commitment to maintaining the highest standards of ethics, responsibility, and leadership. Insight does not tolerate any outcome of inappropriate behavior, fraud, or illegal activity in the investment fund or in any other of his portfolio companies
Published by Globes, Israel business news – en.globes.co.il – on June 25, 2023.
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