Vega Cloud, a tech startup located in Liberty Lake, Washington, has entered receivership after struggling with significant financial obligations, including nearly $830,000 owed to Amazon Web Services. The company, founded in 2018, had raised $12.2 million and generated about $7 million in annual revenue by 2023, according to PitchBook data.
As of January 15, when the receivership was filed in King County Superior Court, Vega Cloud reported having less than $17,000 in its bank account. The company has seen its workforce shrink from approximately 65 employees two years ago to around 35 recently. Co-founder and CEO Kris Bliesner has indicated that the firm is undergoing a restructuring process.
Receivership serves as a state-level alternative to bankruptcy, allowing a neutral party to oversee the company's operations while halting collections from creditors. The outcome for Vega Cloud's employees and its future products remains uncertain at this point.
Previously, Bliesner expressed ambitions for an IPO, highlighting plans for a funding round of $20 million to $30 million in a March 2024 interview. Vega Cloud specializes in FinOps, assisting businesses in managing their cloud expenditures.