Inside information from an executive reveals that Peptimune was forced into bankruptcy after it failed to raise $35 million from venture capital funding. Even after shrinking its work force from 50 people to just five within the last year there was no way to survive on existing resources.
When Peptimune filed for Chapter 7 bankruptcy in the U.S. Bankruptcy Court for Boston it listed $2.01 million in assets, primarily in intellectual property. It also listed $2.17 million in debts while having just $5,963.18 in cash right now. Most companies who file for this type of bankruptcy will attempt to liquidate their assets to pay off their debts.