Movez, founded in 2019, aimed to merge virtual games with physical activities, focusing on enhancing children's football skills through AI technology. Despite initial backing from notable investors, including Chelsea Football Club, the startup faced financial difficulties due to sanctions on Roman Abramovich, leading to its closure.
What Was Movez?
Movez developed an AI-powered app to enhance children's football skills by analyzing their performance and offering personalized improvement tips. Its unique value proposition was merging virtual games with physical activities. Notably, it secured backing from Chelsea Football Club and Mati Kochavi’s AGT International, underscoring its innovative approach.
What Happened to Movez?
The story of Movez is a compelling tale of innovation, challenges, and eventual closure, marked by several key phases:
Initial Ambitions and Funding: Movez aimed to revolutionize children's football training by merging virtual games with physical activities. The startup secured significant backing from Mati Kochavi’s AGT International, Chelsea Football Club, and The DFL Deutsche Fußball Liga.
Innovative AI Technology: The company developed an AI-powered app that recorded children playing football, analyzed their performance, and provided personalized improvement tips. This unique approach garnered attention and support from notable investors.
Sanctions on Abramovich: The British government imposed sanctions on Roman Abramovich due to his ties with Russian President Vladimir Putin. These sanctions severely impacted Chelsea Football Club, a major funder of Movez, leading to financial difficulties for the startup.
Operational Challenges: With the sanctions in place, Movez realized it could no longer sustain its operations. The company decided to shut down, and most employees were expected to join Coach-AI, another venture by Mati Kochavi, to continue their work on similar applications.
Lessons in Funding Risks: The journey of Movez highlights the risks associated with relying on funding from politically exposed individuals. Diversifying funding sources and preparing for geopolitical risks are crucial for the stability and longevity of startups.
When Did Movez Shut Down?
Movez shut down in late March 2022, directly following the British government's sanctions on Roman Abramovich. These sanctions impacted Chelsea Football Club, a significant backer of Movez, leading to the startup's closure.
Why Did Movez Shut Down?
Sanctions on Abramovich: The British government imposed sanctions on Roman Abramovich due to his ties with Russian President Vladimir Putin. These sanctions severely impacted Chelsea Football Club, a major funder of Movez, leading to financial difficulties for the startup. Without this crucial backing, Movez could not sustain its operations.
Financial Constraints: The sanctions on Abramovich led to significant financial constraints on Chelsea Football Club, which was undergoing a sale process. This disruption meant that Chelsea could no longer provide the necessary financial support to Movez, forcing the startup to shut down its activities.
Operational Challenges: With the financial backing from Chelsea Football Club cut off, Movez faced insurmountable operational challenges. The company realized it could no longer continue its activities and decided to shut down. Most employees transitioned to Coach-AI, another venture by Mati Kochavi, to continue their work.
Geopolitical Risks: The journey of Movez highlights the risks associated with relying on funding from politically exposed individuals. The sanctions on Abramovich, a key backer, underscore the importance of diversifying funding sources to mitigate geopolitical risks and ensure the stability and longevity of startups.
Lessons Learned from Movez's Failure
Diversify Funding Sources: Relying on a single major backer can be risky. Spread financial support across multiple investors to mitigate potential disruptions.
Prepare for Geopolitical Risks: Understand the political landscape and its potential impact on your investors. Develop contingency plans to navigate sudden geopolitical changes.
Maintain Financial Flexibility: Ensure your startup has enough financial reserves to weather unexpected challenges. Avoid over-reliance on any single source of funding.
Adapt Quickly to Changes: Be ready to pivot or adjust your business model in response to external pressures. Flexibility can be crucial for survival.
Build a Resilient Team: Foster a team that can adapt and thrive in uncertain conditions. A resilient workforce is key to navigating tough times.
Focus on Core Strengths: Stay true to your startup's unique value proposition. Continuously innovate and improve your core offerings to maintain a competitive edge.
We Shut Down Startups
Movez's journey underscores the complexities and challenges startups face, especially when unexpected geopolitical events disrupt operations. If you're navigating similar turbulent waters, Sunset can help you manage the legal, tax, and operational burdens of winding down your startup.
Don't let the stress of shutting down overwhelm you. Book a demo with Sunset today and smoothly transition to your next venture without penalties or liabilities.
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