There have been a record number of insolvencies and liquidations recorded in the past few years. Simply put, this is one of the toughest periods for modern businesses as political uncertainty, cost of living and inflation all contribute towards multiple organisations not being able to cope in the current climate. One of the most recent victims of the current economic landscape is DataQube, who only recently made the decision to nominate liquidators and also potentially appoint a liquidation committee. In this Blog, we will talk about DataQube Insolvency.
Who Are DataQube?
Let’s start by discussing who DataQube are. On their website, they describe their services as being “sustainable edge data centre solutions that are future ready.” They acted as a disruption to the current technological landscape and established themselves as a company that could bring forward change in the data centre and colocation landscapes. It was founded back in 2020 and operated with a range of experts in current and future communications such as 5G, 6G, satellite and MM Wave. DataQube developed a cutting-edge data centre product in order to meet the demands that will be brought forward once technological developments impact data analysis, transport and storage methods.
The product options available at DataQube were used to work in a variety of different locations and industries. As such, they were hoping to be adopted by various businesses and become a big name in tech as a result. This did occur as the company started doing relatively well; however, it didn’t last.
Filing For Insolvency
On 29th August the company’s creditors met to decide on which liquidators should be nominated and whether a liquidation committee would be necessary. Despite people reaching out for comment, the company has been hesitant to provide any kind of response concerning the current situation they find themselves in, what caused the company to go into liquidation and what they think is in line for the future.
In the most recent data available on the company’s balance sheet filing (which goes up to December 31st 2021) the equity of DataQube was reported as minus £196,681, which is down compared to a balance of £29,159 from the year before. DataQube also reported that they were in debt to creditors and that their debts were mounting.
The CEO of DataQube, Stephen John Pass, on July 19th 2023 filed with Companies House for a new business called Iconic Data Centres. This company shows various pictures of the racks from DataQube and also claims to “have developed the world’s first popular data centres” which is a term that DataQube previously used when they were describing their modular data centre pods. The website also makes reference to an existing internal data centre infrastructure, which likely will have originated from DataQube.
The former CEO and original founder of DataQube took to LinkedIn in order to criticise the Iconic website of iconic. His criticism was with how the company was claiming, “Iconic Data Centres has developed a portfolio of podular DataQube data centres for external deployments that are scalable according to requirements.” He went on to state, “they did not. I invented the podular design – no one else!”
Other Factors That Could Contribute to DataQube Insolvency
As mentioned earlier, it is currently a tough time for lots of businesses and as such, organisations must be on top of what could cause them trouble. Some of the most common issues facing tech companies at the moment that could well have contributed to the insolvency of DataQube include but are not limited to:
- A Lack of Funding
One of the most common issues that tech companies come across is a lack of funding. This is one of the main reasons why a tech company could fail, as developing a new app and new technology isn’t cheap and there is also going to be an extended period of time required before it can properly enter a market. During this time, business expenses, payroll and other tools all still need to be paid for, so the tech company needs to have the right money in place in order to meet these payments and keep the business afloat whilst developments are made and products are tested.
- A Lack of Experience in Sales
Naturally, people who end up working in tech have excellent experience within the world of technology, but this doesn’t mean that they necessarily have the right experience when it comes to selling their business. Naturally, sales are incredibly important and without them, the final product will not be delivered, which is why people need to either learn how to improve selling their product or bring qualified sales people onboard in order to help with promoting the product in a way that will lead to conversion.
- Lack of Direction
There needs to be direction in a new business otherwise it will struggle to gain any kind of traction and will fall flat at the first hurdle. It isn’t uncommon for a lot of new businesses to struggle when it comes to finding direction and it can make it difficult to move forward when there hasn’t been an established road to follow mapped out. This lack of direction from experienced people will often lead to the failure of the business. As such, it is crucial that when a tech company is set up, there is also a clear direction set up that that business is going to go in. The business should also know how to pivot if there are any unexpected roadblocks.
Has Your Business Fallen on Hard Times?
A lot of businesses from various industries are struggling at the moment and as such it is important that companies are doing all they can in order to stay one step ahead. If your business has fallen on hard times though then you should consider enlisting the help of insolvency experts such as Simple Liquidation. We will listen to you to find out what your business does, what your current situation is and how you should move forward in light of that situation. If you have any questions or require any further information in the meantime, then please do not hesitate to get in touch.
