This Is What Happens When a Startup Dies

In this episode of the Odd Lots podcast, hosts Joe Weisenthal and Tracy Alloway interview David Johnson, a managing principal at Resolution Financial Advisors, about the insolvency world and what happens when startups fail. Johnson explains the various alternatives to bankruptcy, such as Chapter 11 restructuring and Chapter 7 liquidation, and details the role his firm plays in maximizing value recovery from esoteric assets like intellectual property, patents, and even human remains. He shares anecdotes from his experiences, including stories about liquidating a company with frozen vaginal fluid, dealing with human heads in freezers, and managing the shutdown of a scooter company, highlighting the challenges and strategies involved in winding down distressed companies and extracting value for creditors. The conversation also touches on the role of venture capital firms, the importance of early intervention in distressed situations, and the ethical considerations of selling personal data.