Joonko

Israeli AI startup Joonko, which developed a platform to help companies with diversity, equity, and inclusion goals, has effectively shut down after filing for Chapter 11 bankruptcy. The company, which employed around 50 people at its peak, laid off its entire workforce last summer following a major scandal. This collapse was triggered by the departure of its former CEO, Ilit Raz, amid serious allegations from the board of "egregious, unethical, and fraudulent conduct." The closure process is now being finalized by the COO, with the company planning to distribute its remaining $4.25 million to investors. Joonko had raised $29.5 million since its founding in 2016 and is currently under investigation by U.S. regulatory authorities.

Israeli AI recruitment startup Joonko is on the verge of closure following a board investigation that uncovered fraudulent conduct by its CEO, leading to extensive layoffs. The company, which had raised $38 million and employed around 50 people at its peak, is dismissing most of its workforce after it was revealed that reported customer numbers were significantly inflated. The board stated in June 2023 that CEO Ilit Raz engaged in unethical and fraudulent activities, harming the company and its shareholders. This scandal has forced the startup, focused on sourcing underrepresented candidates, into a shock closure, with senior executives already departed and remaining employees facing dismissal.