Openspace pulled plug on Aruna deal at the last moment

The US$60 million funding round of Aruna, an Indonesia-based fishery and marine platform, had fallen through late last year. The series B round was to be led by Openspace Ventures.

Tech in Asia understands that the Singapore-based VC firm pulled out of the share subscription agreement (SSA) in December 2022.

Openspace Ventures team / Photo credit: Openspace Ventures

Openspace confirmed that an SSA between Aruna and a special purpose vehicle controlled by the VC firm was terminated on “amicable terms, in accordance with provisions of the SSA.”

Aruna didn’t respond to Tech in Asia’s queries and requests for comment. However, we have learned that the move caused tension between Openspace, the startup, and its existing investors.

An SSA is a definitive agreement entered into by the shareholders and the company and comes after due diligence is done and a term sheet is signed, which is more of an intent document.

Tech in Asia understands that Openspace is in the clear from a legal standpoint and it isn’t a breach of the agreement.

However, pulling out after signing an SSA is generally frowned upon by investors. While there are several instances of investors withdrawing from term sheet agreements, it is uncommon for them to exit after signing the SSA.

Even if the rest of the investors participating in the round want to go ahead with the deal, the agreement gets terminated if the lead investor pulls out.

Image credit: Timmy Loen

The deal between Aruna and Openspace fell through despite several months of negotiations, as per a DealStreetAsia report that quoted sources.

Aruna was looking to raise the round at a valuation of US$400 million but was unlikely to do so given the current environment, the report said, quoting an unnamed investor with knowledge of the matter.

Tech in Asia found that Aruna’s valuation was revised down to around US$300 million prior to the deal falling through.