Tag #Caastle

How did the lack of financial transparency and optimistic revenue projections contribute to Caastle's downfall?

The crisis highlights the risks of relying on optimistic projections in startups. Sophisticated investors, including Peter Thiel, Bill Ackman, and Henry Kravis, seemingly overlooked the lack of financial transparency and misrepresented figures. Caastle's business model, renting out unsold inventory, failed to generate sufficient revenue to offset operational costs and debts.