Fintech startup TenureX closes after funding dries up
“It is with a heavy heart that I have to share the news that we had to close our doors due to lack of funding,” TenureX CEO and co-founder Izhar Arieli wrote on LinkedIn, announcing the closure of his startup to the public. “This was a difficult decision and one that weighed heavily on me for some time. We have struggled to bring in new investment for the past seven months, laying off great people every month, not taking payroll and trying to respond to the rapid changes. i the macro environment and in the investor’s risk appetite. Even though we found PMF and had a working product, a great team and customers, we didn’t break through.”
Founded in 2020, TenureX developed a platform that enabled and streamlined correspondent banking, aiming to democratize correspondent banking. The company raised a total of $5 million, including from FINTOP Capital and VentureIsrael.
Arieli told Calcalist that the company peaked at 20 employees, but he was forced to implement layoffs as time went on and funding dried up. “We launched a funding round in May with the goal of raising $15 million, but I realized very quickly that it was not possible and tried again for a significantly lower sum. However, it turned out that many of the investors I was in contact with when I started were no longer active.”
In his LinkedIn post titled: “Sharing the Importance of Embracing Failure in Entrepreneurship,” Arieli wrote about the importance of encouraging other founders to be open about their struggles and failures and breaking down the stigma surrounding failure in the entrepreneurial world.
“I have seen many peers who, like myself, have experienced the struggles of running a startup. However, they do not want to share their mistakes with others, fearing that they will reflect poorly on them or tarnish their reputation. This is a common line of thinking, but it is also one that is erroneous. Failure is part of the entrepreneurial journey and it is something we must embrace as we move forward.
“Being an entrepreneur is one of the hardest and most consuming jobs in the world. It requires us to face the unknown every minute of our lives and strive for success constantly. However, this pursuit of success can often come at a price, both emotionally and mentally. It is important for other entrepreneurs to see that they are not alone in their struggles, and that even the most promising startups can face challenges and even shut down operations.
“To all of you who are struggling right now, remember that it’s okay to fail; the emotional toll that comes with it is something we all have to face at some point in our careers. The shame we often feel when things don’t work out as planned is misplaced, and we need to recognize that it’s simply part of the process. By sharing our experiences, we can create a supportive and understanding community where we can learn from each other and grow together.”
