Framedrop, a media and technology startup that converts long-form videos into short clips, announced its closure. Co-founder Mário Tarouca highlighted the decision was made responsibly, with all severance paid and contracts honored.
Despite rapid growth — tripling ARR in under a year, working with Portugal’s top three media groups, opening 80+ business opportunities abroad, and doubling the team to 14 — the company faced a critical challenge: a misalignment between sales cycles and funding timing. Continuing without secured financing would have increased risk for the team and the business.
Tarouca reflects on the emotional impact: “The question of ‘what if’ always remains,” yet emphasizes the people-first approach, noting that the team quickly received new job opportunities thanks to referrals and networking.
Looking ahead, the focus is on taking a step back after an intense four years, regrouping, and considering future steps.
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