News Summary

Banking-as-a-service startup Solid, previously known as Wise, has filed for Chapter 11 bankruptcy protection in the United States Bankruptcy Court for the District of Delaware. Founded in 2018, Solid had raised nearly $81 million from investors such as FTV Capital and Headline, achieving a valuation of $330 million by August 2022. Despite claiming a tenfold increase in revenue and doubling its customer base to 100, Solid has faced significant challenges, including costly litigation and an inability to secure further capital. The company is now seeking restructuring or sale options. Solid was involved in a lawsuit with Series B investor FTV Capital, which accused the co-founders of deceit, but the case was dismissed in April 2024 following a settlement. Solid’s financial structure now includes approximately $760,000 in unsecured trade debt and about $7 million in cash, with limited current revenue and only three employees remaining. The startup’s bankruptcy follows a similar path to that of Synapse, another BaaS company that filed for Chapter 11 last year.