Joonko, a New York-based tech startup focused on diversity, equity, and inclusion (DEI), is facing allegations of misleading investors by falsely claiming partnerships with prominent companies. The company, which raised significant funding for its AI-powered job recruitment platform, listed American Express, PayPal, Accenture, and Atlassian as customers or partners on its website and in press releases dating back to 2019. However, representatives from these companies have denied any affiliation with Joonko. The allegations have resulted in the ousting of Joonko’s CEO, Ilit Raz, and have left the startup teetering on the brink of collapse.
False Claims of Partnerships by Joonko:
Investigations have revealed that Joonko falsely touted partnerships with major corporations, including American Express, PayPal, Accenture, and Atlassian. These claims were made on the company’s website and in press releases over the past few years. However, representatives from these companies have stated that they have never had any business relationships with Joonko, exposing the startup’s misleading practices.
Denials from Corporate Icons:
American Express, a company listed as a Joonko partner, clarified that it has never been a client or worked with Joonko in any capacity. Atlassian also confirmed that it has never been a customer of the startup.
Similarly, Accenture denied any ties to Joonko, emphasizing that it was not a customer and had no business relationship with the company. PayPal, another company falsely claimed as a partner, confirmed that it had never partnered with Joonko.
Website Shutdown and Resignation:
Following reports of the allegations against Raz, Joonko disabled its website. Raz, who allegedly exaggerated the size of Joonko’s business to secure a $25 million funding round, resigned after being confronted with the accusations. It appears that Joonko’s false claims about partnerships with major companies played a significant role in the unraveling of the startup.
Past Press Releases and Alleged Growth:
Joonko’s press releases from 2019 and 2022 highlighted its purported relationships with corporate giants. The company claimed to be trusted by companies like Adidas, PayPal, Intuit, and more. In addition, Joonko boasted of remarkable growth, citing 500% sales growth for two consecutive years under Raz’s leadership. However, no specific revenue figures were provided.
Fallout and Investor Repercussions:
Insight Partners, a well-known venture firm, led Joonko’s $25 million fundraising round and had conducted due diligence, including financial audits and background checks. The allegations of false partnerships and misleading practices were not uncovered during this process. The revelations have left Joonko’s future uncertain, with Insight Partners and other investors potentially facing financial repercussions.
Joonko, a DEI-focused tech startup, has faced serious allegations of falsely claiming partnerships with major companies. American Express, PayPal, Accenture, and Atlassian have all denied any affiliation with Joonko, exposing the startup’s misleading practices.
The fallout from these allegations has led to the resignation of CEO Ilit Raz and raised doubts about the future viability of the company. The situation highlights the importance of thorough due diligence by investors and serves as a reminder of the potential consequences of misrepresentation in the startup ecosystem.
