StreamElements, an Israeli startup that offers interactive tools to help companies manage communities and create revenue for streaming content creators, is going through a contraction despite having recently raised a lot of money in funding. The company has reportedly sent dozens of its employees termination notices.
“Due to the current situation in the market, we are working to adjust our plans in order to sustain our high growth rate while creating a path to profitability. As a result we are required to make adjustments to our workforce,” explained StreamElements in a statement. But the company did not clarify what it meant by the “current situation.”
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The move comes after just last September, StreamElements raised $100 million in a financing round led by SoftBank with the participation of PayPal, MorTech and previous investors State of Mind Ventures (SOMV), Pitango First, Menorah Mivtachim and Mivtach Shamir.
So the real question here people must be asking is, “Is this a sign of the times with markets falling and interest rates rising or can this be chalked up to just one company’s failures?” This could just be an example of mismanagement or of StreamElements investors having misjudged its strength.
Well, it is obviously far too soon to determine if the high tech startup world is now experiencing a trend of contractions. The world is not seeing a lot of such problems and in the U.S. people are still able to jump ship and take better offers almost every day as most companies are seemingly suffering through a talent drought. This trend has been dubbed the Great Resignation.
Founded in 2017 by Or Perry, President Doron Nir, CEO Gil Hirsch and CTO Reem Sherman, StreamElements offers an end-to-end platform for livestream and video on demand production. The company monetizes audience engagement, brand sponsorships, and influencer marketing. StreamElements boasts the only full stack of 100% cloud-based tech and business solutions. They have offices in Los Angeles, Palo Alto and Tel Aviv.
“We support over 1 million channels across Twitch, YouTube, and Facebook Gaming. In addition, brands, media and influencer agencies, talent agencies and management firms, esports teams and publishers all leverage StreamElements tech and services to run global sponsorships and other activations.”