SoftBank and Zume had funding deal that never happened - Business Insider

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SoftBank and Zume had letter of intent in December for a funding deal that never happened, leaving the pizza tech startup no choice but to cut hundreds of jobs and give up on robots

. The memo reviewed by Business Insider stated that without the additional funding from SoftBank, Zume had about $150 million on hand from its 2018 funding. Zume is pivoting its entire business to a product it acquired seven months agoannounced on Wednesday that 360 employees, more than 70% of its existing staff, would be laid off across its San Francisco, Seattle, and Mountain View offices

. One source said that the burn rate was cut in half after the layoffs, but declined to specify the exact amount.Another source with knowledge of the original SoftBank deal told Business Insider that the Japanese fund pushed hard for Zume to pursue "global domination," far beyond cofounder and CEO Alex Garden's ambition to unseat traditional pizza chains like Domino's.

 

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