Pitch, the Berlin-based startup known for its collaborative presentation software, is undergoing a major transformation as CEO and co-founder Christian Reber steps down and a substantial two-thirds of its workforce, around 80 personnel, face job cuts. This shift comes as Pitch reevaluates its trajectory, opting for a more sustainable and self-reliant approach.
Founded in 2018, Pitch entered the scene in 2019 with $30 million in funding, backed by the creators of Wunderlist, a Microsoft-acquired app. Over the years, Pitch secured more than $130 million in funding from notable investors such as Lakestar, Index Ventures, Tiger Global Management, and high-profile angels, including the founders of Instagram and Zoom.
The specifics of Pitch’s reset involve collaboration with investors to reshape the company and its capital structure. While the details remain undisclosed, it’s confirmed that Pitch returned unspent cash to investors, adjusting their ownership stakes. This strategic move places current and past employees, including founders, in possession of 80% of Pitch. The company now has sufficient cash reserves to sustain operations for the next couple of years, paving the way either towards profitability or a potential sale at a lower valuation than its previous $600 million mark in 2021.
As part of the new strategy, a significant reduction in headcount is underway. While it’s still early in the year, this recent announcement aligns with a trend of layoffs seen in the startup landscape, suggesting that 2024 may echo the challenges faced in the preceding year.
Image credit: Unsplash
