Estonian startup Eurora Solutions files for bankruptcy after raising tens of millions

Eurora management: founder Marko Lastik (left), CFO Anneli Aljas (center) and CEO Egon Veermäe (right). Photo: Erakogu

Estonian entrepreneur Marko Lastik's startup Eurora Solutions, infamous due to multiple scandals and having raised tens of millions of euros from investors, has now filed for bankruptcy.

In 2022, Eurora Solution OU announced to the public that investors had granted the company 37 million euros for development in a Series A round, a sum only previously attained by Starship Technologies. Founded in 2018 and engaged in developing customs technology based on artificial intelligence, Eurora received funds both from Estonia and abroad.

As recently as August of this year, Eurora, which employed 150 people, was hailed as one of the largest employers in the deep tech sector among Estonian startups. However, cracks in the company's operations had been visible for a while -- both Postimees and the business daily Aripaev had reported on Eurora's significant tax debts and founder Marko Lastik's legal troubles. This spring, it became public that Enterprise Estonia might demand back the 1.3 million euros given to the company. In September, the company announced layoffs for over a hundred employees.

In an unexpected twist, the Harju County Court confirmed that on Sept. 28, Eurora Solutions had filed for bankruptcy. Board member Kaie Hansson did not comment on what had happened to 40 million euros within just a year.

«Management board member Kaie Hansson submitted a bankruptcy application to Harju County Court on Thursday, Sept. 28, as the company lacks sufficient working capital to cover its obligations, and investors have decided not to make any additional investments. The future action plan depends on the court's decision,» Eurora Solutions laconically told Postimees.

Individuals, large funds, and, through state subsidies, also taxpayers have invested money in the company over the years. Although there have been rumors of investors being beside themselves with rage, all are tight-lipped.

None of the investors -- Dutch Connected Capital, Kristjan Vilosius of Change Ventures, nor Equity United -- responded to requests for comment. The latter is an Estonian company, created with taxpayer money -- the investment company's partners are the Estonian state and the European Investment Fund. However, company partner Mart Tooming did not respond to a request for comment.

Although officially Anneli Aljas is still the CEO of Eurora Solutions, individuals familiar with Eurora said that she had not been seen in the company since the beginning of September, when company creator Marko Lastik had essentially signaled that he was taking de facto control of the company. Due to delays with salaries, almost the entire HR department resigned in mid-September.

The Labor Inspectorate told Postimees that they have received six labor disputes related to Eurora's wages.