Blockchain-powered freelance marketplace Nodal Labs has entered administration, according to a recent Companies House filing.
The start-up, launched in September 2018 with the intention to reinvent the recruitment process for businesses and freelancers, revealed that it had encountered financial difficulties relating to cashflow problems which had caused it to cease trading. Bai Cham and David Elliot from CVR Global have been appointed joint administrators.
The company sought to give hirers access to a talent pool of freelancers whose skills where verified by third-party industry contacts, whilst offering freelancers a platform to advertise their services which utilised a system of “smart contracts”, which was designed to eliminate late payment issues and “unfair scope creep”.
The firm made headlines last month after reportedly failing to pay contractors and agency workers for the third month running in some cases, with permanent staff receiving payment only after last-minute funding was secured by CEO Oliver Hibbs-Broadway.
The cashflow problems resulted in a “coup” by Nodal staff, including COO Mark Williams, attempting to wrest control of the company from Hibbs-Broadway and director Barry Hudson.
The firm had signed a £250 million contract with Manchester-based Minstrell Recruitment and was also collaborating with Norman Foster’s architectural design firm Foster and Partners.
More than 2,000 freelancers and 35 companies were signed up to the company’s platform when administrators were called in.
Joint administrator Bai Cham from CVR Global said like most start-up companies, the challenge was accessing funding until the business became self-sufficient, adding further working capital and a technical maintenance budget is required to allow the platform to reach its maximum potential.
The firm is seeking new owners, with the deadline for registering interest in acquisition next Wednesday, 30th October.
23rd October 2019.
