SoftBank Group’s Vision Fund is selling back its nearly 50% stake in Wag Labs Inc. as the Los Angeles dog-walking start-up cuts staff.
last month and was replaced by the company’s 29-year-old vice president of product and partnerships, Garrett Smallwood.Even after a cash infusion and aggressive spending, Wag struggled to compete with Rover.com. Wag’s position worsened once it cut back on promotions for new customers. Wag had beenas recently as October, in a deal that was expected to value the business at less than the amount SoftBank paid for its stake, people familiar with the situation said recently.
This week’s moves will help Wag “refocus on delivering sustainable growth,” Smallwood wrote in his memo. The company isn’t looking to buy back shares from other investors, a person familiar with the matter said Monday. Earlier venture investors include General Catalyst, Sherpa Capital and Slow Ventures.
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