Local startup LeadCrunch raised $425,000 in a financing round announced back in October, $75,000 less than the company originally reported.
At the time of the first announcement, the software firm was expecting an additional $75,000 in the round. But investor group Bialla Venture Partners 2 LLC never contributed, LeadCrunch CEO Olin Hyde said Friday.
Hyde said he walked away from Bialla following a disagreement over terms.
LeadCrunch was introduced to Bialla through startup accelerator CONNECT’s Capital Match, a program meant to link entrepreneurs with investors.
CONNECT and Hyde released a joint announcement on the deal last year before the deal had actually closed.
CONNECT’s president and CEO, Greg McKee, said he was told by Hyde that the deal had closed, but later learned that it hadn’t.
“I didn’t do enough of my homework, and didn’t confirm that the deal had closed,” McKee said. “I feel awful that it wasn’t confirmed, and I definitely learned my lesson to do more digging before making an announcement.”
Hyde said the company has raised a total of $1.2 million since the company’s 2013 inception.
The San Diego Business Journal originally reported that LeadCrunch’s entire $500,000 had fallen through. Hyde clarified that it was only the one investor who he parted ways with.
