Joonko seemingly lied about working with American Express, PayPal
DEI-Focused Tech Startup Joonko Accused of Misleading Investors and Fabricating Partnerships
Joonko, a tech startup that focuses on diversity, equity, and inclusion (DEI), is facing allegations of deceiving investors and falsely claiming partnerships with major US corporations. Recent reports reveal that the company falsely touted American Express, PayPal, Accenture, and Atlassian as customers or partners on its website and in press releases dating back to 2019. These allegations have led to the potential collapse of the New York-based startup, whose board accused ousted CEO Ilit Raz of exaggerating the size of the business to secure a $25 million funding round.
Several major companies, including American Express and Atlassian, have denied any affiliation with Joonko. A spokesperson from American Express clarified that the company has “never been a client of Joonko, nor worked with them in any way.” Similarly, Accenture confirmed that it was not a customer and has no business relationship with the startup. PayPal also denied any partnership or deal with Joonko.
The controversy surrounding Joonko intensified after reports revealed that the company’s website was disabled following the allegations against Raz. Attempts to reach out to Joonko representatives for comment have been unsuccessful. According to Israeli tech news outlet CTech, Raz claimed to be working with approximately 150 companies, when in reality, the number was significantly smaller. Raz ultimately resigned when confronted with these allegations.
Archived versions of Joonko’s website from last September displayed a list of partner companies that included Adidas, Nike, Intuit, PayPal, and American Express. The company also boasted about its ties to major corporations in press releases dating back nearly four years. However, representatives from Nike, Adidas, Northwestern Mutual, Crocs, and others have not responded to requests for comment. Intuit declined to comment.
Raz’s alleged misdeeds involve submitting fake invoices, creating fake wire transfers, and fabricating bank accounts. Insight Partners, a well-known venture firm, led Joonko’s $25 million Series B funding round and conducted due diligence before the investment. The alleged falsifications were not uncovered during this process, which involved financial audits, customer calls, and background checks.
Joonko’s board of directors released a statement condemning Raz’s conduct, describing it as “egregious, unethical, and fraudulent.” The board is currently investigating the company’s financial records over the past year to assess their accuracy. Insight Partners stated that they do not tolerate misconduct, deceit, or unlawful activity and are taking the allegations seriously.
As of now, the future of Joonko remains uncertain, and it is unclear whether the company will be able to resume operations. The startup, which was founded in 2016, has raised approximately $38 million in outside funds and has offices in downtown Manhattan and Tel Aviv.
FAQs:
1. What is Joonko?
Joonko is a tech startup that focuses on diversity, equity, and inclusion (DEI). It offers an AI-powered job recruitment platform aimed at enhancing corporate DEI efforts.
2. What are the allegations against Joonko?
Joonko is accused of misleading investors and fabricating partnerships with major US corporations. The company falsely claimed American Express, PayPal, Accenture, and Atlassian as customers or partners on its website and in press releases.
3. How did Joonko respond to the allegations?
Joonko disabled its website following the reports and has not yet provided any public comment in response to the allegations.
4. What companies have denied any affiliation with Joonko?
American Express, Accenture, Atlassian, and PayPal have all denied any relationship with Joonko.
5. Who is Ilit Raz?
Ilit Raz is the ousted CEO of Joonko. She is accused of exaggerating the size of the company’s business to secure a $25 million funding round and fabricating partnerships with major corporations.
6. What is the current status of Joonko?
The future of Joonko is uncertain, and it is unclear whether the company will be able to resume operations. The board of directors is investigating the company’s financial records to assess their accuracy.
Joonko’s claimed partnership with American Express, PayPal appears dubious
Joonko, a technology startup focused on diversity, equity, and inclusion (DEI), is facing serious allegations of deceiving investors by falsely claiming partnerships with major US companies. The New York-based company, which promotes its AI-powered job recruitment platform as beneficial for corporate DEI efforts, has been accused of exaggerating its business size and misleading investors during a $25 million funding round. Several notable companies, including American Express, PayPal, Accenture, and Atlassian, have all denied ever working with or being customers of Joonko.
Joonko’s website was disabled after news outlets reported on the allegations against the startup’s founder, Ilit Raz. Raz allegedly claimed to have partnerships with around 150 companies, but evidence suggests this number was significantly smaller. When confronted, Raz resigned as CEO. Joonko’s website listed prominent companies such as Adidas, Nike, Intuit, PayPal, and American Express as partner companies, but it is unclear if these claims are true.
Further press releases from Joonko dating back to 2019 also touted its relationships with major corporations and claimed significant growth under Raz’s leadership without presenting specific revenue numbers. Requests for comment from representatives of companies listed as Joonko clients have largely gone unanswered.
The alleged misconduct by Raz includes submitting fake invoices attributed to real employees and companies, fabricating wire transfers, and creating fake bank accounts. Joonko has offices in New York City and Tel Aviv.
Insight Partners, a well-known venture firm, led the $25 million funding round for Joonko and is currently investigating the allegations against Raz. The company has raised around $38 million in outside funds and employs over 50 individuals. The future of Joonko’s operations remains uncertain as the investigation continues.