On Tuesday, June 8th, Clearco, a Silicon-Valley funded financial technology startup, announced that Co-founder and CEO, Michele Romanow, was stepping down and that the company would be cutting as much as 30% of its staff.
The news came to many as a surprise, as Clearco had recently raised $11 million in a Seed financing round and was growing steadily. Even more surprising was the announcement that Romanow was leaving, as she was considered a leading figure in the FinTech industry and had a strong presence within the startup community.
The news came as a result of Clearco’s inability to raise additional funds, which had apparently been on the table in prior weeks, but did not materialize. The company reportedly felt that without more capital, it was unable to continue operations.
Clearco was launched in 2014 and billed itself as a “digital bank for the new economy” that combined financial services, crowdfunding, and digital payments. The company had quickly grown to customers all over the world, boasting that it had saved users over $227 million.
In a statement released by Romanow, she said, “It is with great sadness and many emotions that I have decided to step down from my role at Clearco. I am extremely proud of the work we have done together, however, I ultimately decided that the best thing for the company was for me to take a step back.”
The staff cuts, while unfortunate, are a necessary step in keeping the company afloat in the coming months. All affected employees will receive severance packages. Romanow also announced that she will remain a board member, and will be actively involved in the company’s continued success.
In light of these events, Michele Romanow’s years of work and dedication to Clearco will be remembered fondly. As the company moves forward, her presence will still be felt.
Hey Subscribe to our newsletter for more articles like this directly to your email.