Since 2016, Levels has been a key agent in the Stockholm tech ecosystem, known for its ability to build, grow, and invest in digital products in collaboration with a mix of enterprise clients, startups, and scaleups according to a model of shared risk and reward. The recent global venture downturn resulted in our partners’ inability to secure the capital they needed, which in turn led to postponed and canceled projects and affected their ability to pay for our services. This, coupled with a failed collaboration with Gateway Group, pressured our model and precipitated the bankruptcy of our jointly-owned operational entity in July.
Following July's bankruptcy filing, Levels was operated as a bankruptcy estate led by Leonardo Merino, a noted and experienced lawyer specialized in bankruptcy and insolvency at Merino Advokatbyrå. “My aim is to secure the best possible outcome for creditors, employees, clients, and partners. Having operated the estate in close collaboration with the team at Levels, I was convinced of their ability to continue running the business following this reorganization bankruptcy. As a result, the estate was acquired by Levels in a competitive tender and the overall bankruptcy management process turned out positive for the estate and the creditors,” comments Merino.
Having formally exited the bankruptcy process, the new Levels kicks off with a slimmer core team of highly skilled and senior colleagues, many of whom demonstrated their confidence in the company’s future by reinvesting in a rebooted Levels that is now majority-owned by the team. In addition to the commitment from the team, we have also secured a funding round led by a private strategic investor along with several existing key shareholders. “The rebooted Levels is a startup with a lean team of highly experienced professionals and a diverse range of trusted clients. With this solid foundation, the company is in the position to grow sustainably in a profitable way over the next couple of years,” reflects Claes Wiberg, the largest external investor in Levels since 2022 and the founder of the Nasdaq OMX-listed company, B3 Consulting Group.
We will now focus on what we do best: building top-tier digital products and supporting their growth. We are committed to helping our clients reach their full potential, ensuring a sustainable and mutually beneficial partnership in the process. Our immediate priority is to retain and nurture the clients and ventures already under our care, rather than making new investments. Our customers have consistently expressed a high degree of satisfaction with our delivery of quality products. To reduce client risk, we will prioritize fully-funded development projects and partnerships and apply stricter criteria to the entrepreneurs and companies with whom we work; this ensures that they have the financial and management resources to weather volatile market conditions like the ones we as an industry have just experienced.
“This year has undoubtedly tested us, but we are committed to building on our core strengths - digital innovation and product-led development - while fostering new partnerships that align with our values. We are especially grateful to the team members, clients, and investors who have remained by our side during this challenging time and continue to back us today. Your support is invaluable as we work together towards a brighter and more innovative future. I’m confident that we’ll emerge stronger and more focused than ever before,” adds Linus Granborg, original Levels founder and newly-appointed CEO.
Throughout this process, we at Levels have worked hard to fulfill our obligations and keep open lines of communication. With these challenges behind us, our priority is to ensure the continuity of our relationships and services. Levels is evolving, and while the road ahead may still contain challenges, we are fully committed to this journey. As a company and team, we remain open to exploring new partnerships to drive innovation and create value in the digital space.
