This week’s Startup 360 kicks off with cohost Simon Thomsen recounting the two days spent in the NSW Supreme Court this week as senior council for the liquidators of failed medtech StrongRoom AI probed cofounder and former CEO Max Mito, and director Divesh Sangvhi, about the potential insolvency of the business.
Sangvhi sold his company, Medical Benefits Australia (MBA), to StrongRoom when it had no cash, having already rented the company’s IP to the startup, which is was also, frequently unable to pay for on time.
Simon recounts how Mito told the court that they company’s approach to board minutes was “informal”, and when one director raised concerns that the acquisition had gone through, Mito explained that “We had a bit of an issue with board members not always remembering details.”
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What also emerged was that both MBA and StrongRoom were behind on the tax obligations, and the ATO was chasing both companies for money, as well as issuing Sangvhi with Director Penalty Notices for non-compliance.
The details emerging from the public examination into the company’s failure left both Startup 360 hosts a little gobsmacked, especially when it came to company governance, and the liquidators appear to be taking a close look at the actions of both men and their compliance with the Corporations Act.
On a happier note, the also shared some excellent advice from the Oracle of Omaha, Warren Buffett, now 95, in his final shareholder letter as the CEO of Berkshire Hathaway.
His excellent advice includes: “Don’t beat yourself up over past mistakes – learn at least a little from them and move on. It is never too late to improve. Get the right heroes and copy them.”
Their guest this week is Shreya Gupta, cofounder of Australian Coffee Culture, which is championing Australian-grown coffee – it accounts for just 1% of the 6 billion cups of coffee we drink annually – in a new range of ready-to-drink pick-me-ups.
Shreya takes about moving from corporate life to startup founder and why Australian coffee beans deserve a special place in our cups.
Startup 360 is more founder fund than founder mode. It’s all about finding out what makes people tick and staying human.
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