PLUTA partner Sebastian Laboga seeks investor for software start-up Fraugster

Restructuring expert Mr Sebastian Laboga from PLUTA Rechtsanwalts GmbH is holding talks with investors regarding Fraugster, a start-up and developer of innovative anti-fraud software. The Berlin-based company is involved in provisional insolvency proceedings, as a necessary funding round as part of an M&A process could not be finalised. On 17 January 2023, the Local Court of Charlottenburg appointed Mr Sebastian Laboga as provisional insolvency administrator.

Founded in 2018, Fraugster Services GmbH is a payment intelligence company that helps the e-commerce ecosystem to minimise fraud and maximise revenue by making smarter real-time business decisions. The company has developed one of the most accurate AI fraud prevention solutions in the market and is backed by reputable European investors.

The PLUTA team has already held initial discussions with interested parties with the intention of finding a new investor over the coming weeks. Mr Sebastian Laboga, an attorney and managing partner at PLUTA, said, “We are looking for an investor for the company. The fraud detection software it has developed helps businesses in various industries to efficiently identify suspected cases. This can prevent substantial economic damage. The customer feedback is very good. Given all of this, I am confident that a viable solution can be achieved.” Attorneys Mr Tillman de Vries and Mr Sven Braun are also working as part of the PLUTA team. The M&A experts at GO & Company GmbH are supporting the process of finding an investor.

Mr Laboga has been on site with his team since the proceedings were ordered. The company employs more than 50 people, whose salaries are guaranteed thanks to specific substitute benefits.

The business will continue operating without restriction. All services are still available. Customers are calling for the company to remain operational. This is a positive sign for the M&A process.

Fraugster CEO Mr Christian Mangold said, “We are supporting the PLUTA team, as we want a long-term solution to be found. For investors, this is the ideal time to acquire a company that is growing at a disproportionately fast rate in an expanding market.”