Powa Technologies was a UK fintech company that developed mobile payment and e-commerce technology under the PowaTag brand. CEO Dan Wagner claimed a $2.7 billion valuation and secured $176M in funding from investors including Wellington Management. The company partnered with major brands like L'Oreal and Adidas.
Company Data
- Founded: 2007 — Dan Wagner
- Claimed Valuation: $2.7 billion
- Failed: February 2016 (administration)
When administrators examined the books after collapse, they found revenue was a small fraction of what had been claimed. The "partnerships" with major brands were mostly pilot programs with minimal usage. PowaTag was a functional but unremarkable product. The company had burned through $176M with almost nothing to show for it. Deloitte was appointed as administrator and sold the assets for a tiny sum.
Key Lesson
Self-reported valuations and partnership announcements mean nothing. Real due diligence—looking at bank statements, not press releases—would have revealed the truth before investors lost $176M.