Liquidity Founder Says OpenWeb Investors Failed to Provide Promised Funding

Liquidity co-founder Ron Daniel said OpenWeb's shareholders failed to deliver funding they had promised, offering his account of the company's financing crisis in an interview published November 6. He disputed claims that the lender had blocked a rescue investment and said Liquidity sought repayment only after waiting for shareholder financing plans to materialize. Daniel said Liquidity had warned last year that OpenWeb was missing its own milestones. He said Insight Partners founder Jeff Horing personally assured him that funding would arrive and asked for patience. According to Daniel, the lender waited 12 months while proposals for financing, shareholder investment and cost reductions failed to produce the promised capital. He said Liquidity had agreed to a refinancing plan. Daniel also rejected the allegation that the lender prevented a proposed $14 million shareholder injection, arguing that investors could have provided the money promptly. “Our obligation is to ensure that 100% of our investors’ money comes home,” Daniel said. He said approximately half the debt had been recovered and that he believed collateral covered the rest; the interview did not date those collections. OpenWeb's account in its court application disputed the lender's position. The company said it had met payment obligations and financial covenants, challenged the assertion of a material adverse change, and alleged that intervention in its bank accounts damaged liquidity and obstructed refinancing. OpenWeb, which supplies publishers with commenting and community systems, disclosed approximately NIS 177 million in debt. Temporary trustee Ehud Gindes is overseeing recovery and sale efforts.