On Wednesday, video startup Quibi told its investors that it will shut down, a dramatic collapse of a digital media startup that launched just six months ago. Now those investors—from Quibi CEO Meg Whitman to Google, Facebook and J.P. Morgan—are facing losses and figuring out what they may recoup from the flop.
Quibi revealed to investors Wednesday afternoon that, after paying its outstanding bills, it would have only about $350 million left to return to shareholders, out of the $1.75 billion it raised. That means most investors will lose money. But because investors in the earlier rounds have rights to get preferential treatment, those who participated in the last round will come out the worst.