The Controversial Leadership Change at Tradeshift: Allegations, Denials, and the Future of the Fintech Startup

Introduction

In a shocking turn of events, Tradeshift, a late-stage fintech startup that has raised more than $1 billion in venture and debt, recently fired its co-founder Christian Lanng amid allegations of sexual assault and harassment. The company, known for its B2B fintech platform for payments, supply chain procurement, and marketplace services, released a statement on Tuesday citing “serious allegations of sexual assault and harassment” and “serious misconduct on multiple grounds” as the reasons for Lanng’s dismissal.

However, Lanng has vehemently denied these allegations, leaving the fate of the company hanging in the balance. Amidst this controversy, Tradeshift has appointed former chief revenue officer James Stirk as interim chief executive, hoping to navigate these turbulent times and ensure the company’s continued success.

The Rise of Tradeshift

Tradeshift’s journey to becoming a major player in the fintech industry began in 2005 when Christian Lanng, along with co-founders Mikkel Hippe Brun and Gert Sylvest, formed the company under the name EasyTrade. Initially focused on providing a platform for streamlining trade processes, Tradeshift soon expanded its services to encompass payments, supply chain procurement, and marketplace solutions, attracting significant investment from renowned companies like HSBC, Goldman Sachs, American Express, and Intuit.

Tradeshift’s innovative B2B fintech platform revolutionized the way businesses conducted transactions, enabling seamless collaboration and efficiency between buyers and suppliers. Over the years, the company’s valuation soared to a staggering $2.7 billion in 2021, cementing its position as a key player in the industry.

The Allegations and Fallout

In August, Tradeshift was hit with a bombshell when allegations of sexual assault and harassment against co-founder Christian Lanng came to light. The company claims to have learned about the allegations in late August and promptly took action by terminating Lanng’s employment on September 1.

Lanng, however, denies these allegations and accuses the company of fabricating them in response to a breakdown in negotiations over his and others’ departure from Tradeshift. According to Lanng, several co-founders were in active discussions about their post-HSBC exit deal when the board abruptly fired him.

The controversy surrounding the allegations against Lanng has sent shockwaves through the industry, raising questions about the company’s culture and leadership. Tradeshift’s decision to fire one of its co-founders and the subsequent denial of the allegations have created a public relations nightmare, leaving investors, employees, and stakeholders uncertain about the future of the company.

Support and Doubts

Despite Tradeshift’s allegations against Lanng, three women who have worked or are currently working at the company have expressed their support for him. This conflicting response adds another layer of complexity to the situation, making it challenging to discern the truth.

Furthermore, Tradeshift’s claim that the board had recently become aware of the allegations raises questions about the company’s internal processes. Lanng asserts that as a co-founder, long-time board members would have been aware of any formal complaints or accusations made against him, further undermining Tradeshift’s narrative.

Goldman Sachs Group, one of Tradeshift’s strategic sponsors, sold its shares in the company in 2021, distancing itself from the unfolding controversy. HSBC, another significant investor, declined to comment on the recent events, leaving investors and industry observers speculating on the potential impact on Tradeshift’s relationships with its strategic sponsors.

The Fallout: Leadership Change and Future Prospects

Following Lanng’s dismissal, Tradeshift named former chief revenue officer James Stirk as the interim chief executive. Stirk’s appointment aims to provide stability and leadership during this uncertain period for the company. However, the ultimate resolution of the controversy and its impact on Tradeshift’s reputation and prospects remain uncertain.

Tradeshift has taken steps to address the allegations within its organization by establishing a dedicated, anonymous whistleblowing line available to its 800 employees. This move indicates the company’s commitment to ensuring a safe and respectful workplace environment.

As Tradeshift navigates the fallout from these allegations, the company’s future hinges on its ability to rebuild trust, address any systemic issues within its organization, and demonstrate a commitment to transparency and accountability.

The Future of Tradeshift

Despite the controversy, Tradeshift’s core business remains strong. The company’s B2B fintech platform continues to attract interest and investment from industry giants. Most recently, HSBC invested $35 million in Tradeshift in July, demonstrating continued confidence in the company’s vision and potential for growth.

However, Tradeshift’s ability to weather this storm and emerge stronger hinges on its ability to address the allegations effectively and implement measures to prevent similar incidents from occurring in the future. The company must undertake a thorough investigation of the allegations against Lanng and take appropriate action based on the findings.

Conclusion

The controversy surrounding the leadership change at Tradeshift has sent shockwaves through the fintech industry. Allegations of sexual assault and harassment against co-founder Christian Lanng have rocked the company, leading to his dismissal and a fierce denial of the allegations.

As Tradeshift grapples with the fallout, the company’s future hangs in the balance. Rebuilding trust, addressing systemic issues, and demonstrating a commitment to transparency and accountability will be crucial for its survival. The industry will closely watch how Tradeshift navigates this challenging period and whether it can emerge stronger and more resilient.

Summary

Tradeshift, a late-stage fintech startup, recently fired its co-founder Christian Lanng amid serious allegations of sexual assault and harassment. Lanng vehemently denies these allegations, claiming they arose due to a breakdown in negotiations over his and others’ departure from the company. Tradeshift has appointed an interim chief executive and established an anonymous whistleblowing line to address the allegations. The future of Tradeshift remains uncertain as it seeks to rebuild trust and navigate the aftermath of this controversy.

commercial changeA late-stage fintech startup that has raised more than $1 billion in venture and debt, fired its co-founder Christian Lanng, citing “serious allegations of sexual assault and harassment” and “serious misconduct on multiple grounds,” according to a report. company statement published on Tuesday.

Lanng has vehemently denied the allegations. Tradeshift has appointed former chief revenue officer James Stirk as interim chief executive.

Tradeshift – and its B2B fintech platform for payments, supply chain procurement and marketplace services between buyers and suppliers – has attracted investment from a wide range of investors, including strategic sponsors HSBC, Goldman Sachs, American Express and Intuit. More recently, HSBC invested 35 million dollars in July.

A spokesperson said Goldman Sachs Group sold its shares in 2021. HSBC declined to comment on recent events.

Tradeshift’s statement said the company learned of the allegations in late August and fired Lanng on September 1. The American-Danish company said it had established a “dedicated, anonymous whistleblowing line” for its 800 employees.

In August, Lanng, while still running Tradeshift, launched a separate company called Beyond work, which describes itself as a “human-centric interface to automate anything with multiplayer AI.” It has raised $2.5 million in seed funding led by Moonfire Ventures, with co-investment from the MIT-affiliated E14 fund, and is currently only on a waitlist. TechCrunch has reached out to Moonfire for comment and we will update this post with any response we receive.

In a statement sent to TechCrunch, Lanng said: “I reject the statement made this week by Tradeshift. There has never been an HR case, complaint or formal accusation filed against me at Tradeshift. The board includes long-time members who would have been aware of such claims, so the claim that the board recently became aware of anything is not true.”

Lanng added: “I have given the current leadership and the new board every opportunity to move forward peacefully. “This would still be my preference, but I am now getting advice on my next steps.”

Lanng claimed the allegations arose from a breakdown in negotiations over his and others’ departure from Tradeshift. “Several co-founders are leaving Tradeshift after being in active discussion about our post-HSBC exit deal when the board decided to fire me,” he said.

In a seemingly unrelated development, Tradeshift co-founder and former platform director Mikkel Hippe Brun posted on LinkedIn on Tuesday that he had left Tradeshift to work at another startup. TechCrunch has contacted him for comment.

A Tradeshift spokesperson said the company was not responding to Lanng’s statements beyond what it had already posted on its website. TechCrunch has not yet been able to independently substantiate Tradeshift’s allegations against Lanng. Three women contacted individually by TechCrunch, who have worked or are working at Tradeshift, have expressed their support to us.

Lanng formed Tradeshift in 2005 with Hippe and Gert Sylvest, originally under the name EasyTrade. It has been valued at 2.7 billion dollars, in 2021.