Boston-Based Harvard Innovation Labs Venture Cites Financial Woes
AllHere Education Inc., a Boston-based Harvard Innovation Labs venture, has filed for Chapter 7 liquidation in Delaware, citing financial difficulties and concerns about the privacy of students’ data. The company, which provided AI-powered chatbots to schools, listed $1.75 million in liabilities and $2.9 million in assets in its petition.
Investigation into Misuse of Student Data
The filing comes amid an investigation into allegations that AllHere’s “Ed” project, a $6 million AI initiative with the Los Angeles Unified School District (LAUSD), may have misused and failed to protect students’ information. Independent investigators from LAUSD have opened an inquiry into the claims, which were first reported by a whistleblower last month.
LAUSD Response
The LAUSD has stated that it “took steps in its original agreement with AllHere to protect the interests of our students and families, and we continue to evaluate all options to obtain the best outcome for all stakeholders.” However, the district has not commented on the whistleblower’s allegations.
AllHere’s Products and Mission
AllHere’s products aim to increase enrollment, reduce absenteeism, and boost student success from kindergarten to 12th grade using AI-powered chatbots. The company’s founder and former CEO, Joanna Smith-Griffin, started AllHere in 2016 to scale up solutions to problems she encountered as a teacher. Last year, the company earned $2.4 million in gross revenue, but was on track to make significantly less this year, with only $587,000 in gross revenue since January.
Financial Difficulties and Bankruptcy
The company’s financial difficulties led to the furlough of most employees in June, and Smith-Griffin has since left the company. According to bankruptcy papers, Smith-Griffin received an annualized salary of $105,000 and was reimbursed for over $243,000 in expenses in the last year. Former Chief Technology Officer Toby Jackson, who earned a $305,000 salary, is now serving as AllHere’s chief restructuring officer.
Bankruptcy Proceedings
The debtor is represented by Joseph M Mulvihill and Andrew A. Mark of Young Conaway Stargatt & Taylor LLP. The case is In re. AllHere Education Inc., case number 24-11841, in the U.S. Bankruptcy Court for the District of Delaware.
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