The ax has been falling at the workforce at Denver-based startup Convercent, despite the fact it just raised $10 million.
Convercent’s cloud-based technology allows companies to track compliance and corporate ethics.
A former employee told the Denver Business Journal that the company recently cut 32 positions from its 70-person payroll. The newspaper is also reporting that some workers at the two-year-old company were replaced with new hires. “[CEO and Co-Founder Patrick] Quinlan mentioned that he staffed up too soon and abruptly decided to fire half of his staff,” this unnamed person is quoted as saying. The layoffs occurred due to poor quarterly results.
Quinlan confirmed the layoffs, but said they did not involve half the staff. “Some of the staffing we had wasn’t keeping us aligned with the market,” Quinlan said. “We need to make sure we have the right, best people there.” He also said the company is still hiring to fill multiple positions, though only one marketing position is listed on its website.
As part of the $10 million investment, SAP Ventures Managing Director Doug Higgins joined Convercent’s board of directors. Of the $10 million, $7.2 million was for equity, according to the quarterly MoneyTree report from PricewaterhouseCoopers and the National Venture Capital Association.
That report found $404.6 million in venture capital invested in the Boulder/Denver area in 2013 – a drop of 23 percent from 2012.