CEO Domm Holland led Fast raised more than $100 Million last year
Controversial CEO Domm Holland announced Tuesday that the online checkout services company is shutting its doors.
Fast had made great strides after it landed a $102 million Serie B infusion of cash in a fundraising round last year led by payments giant Stripe.
The company was embarking on its next fundraising round, attempting to bring in new money at a valuation above $1 billion, to get unicorn status in Silicon Valley.
Why is it closing down?
Tech news sites The Information and TechCrunch reported that investors had grown concerned about Fast’s spending compared to its revenue, which was only about $600,000 in 2021. Several rank-and-file workers, whom the company referred to as “Fastronauts,” told NPR they had noticed Holland pouring significant money into deals aimed at creating marketing buzz, like partnerships with sports teams. They questioned the benefits. NPR also published an investigation in February in which some close to Fast raised doubts about Holland’s decision-making, and others who knew him in his home country of Australia revealed lingering bitterness about the downfall of his company there.
In his statement announcing Fast’s closing, Holland said he was proud of “bringing one-click and headless checkout into the mainstream. Sometimes trailblazers don’t make it all the way to the mountain top,” he said. “But even in those situations, they pave a way that all others will follow.”