shohei

LinQ, the company behind the iPhone app “whoo,” had its bank deposits provisionally seized by one of its VC investors. The sequence of events appears to be as follows. Would this have been covered if they had subscribed to @UseCorgi’s startup insurance? ・whoo is a social app that shows friends and family members’ real-time locations on a map. It also displays movement paths, dwell times, and remaining phone battery levels, enabling features like “Hey, you’re nearby—let’s meet up.” ・Apple removed all of LinQ’s apps from the App Store and terminated its developer agreement. This was not a routine rejection of an update; it is reasonable to conclude that Apple determined there had been a serious violation. ・There is an unverified claim that, while LinQ stated it did not share precise location data with third parties, it was in fact sending that data to advertising companies. If true, the discrepancy between the company’s public explanation and its actual practices may have been a key factor. ・The VC is alleging a breach of representations and warranties made at the time of investment. Investment agreements typically include warranties such as “we are not in violation of any laws or material contracts.” The VC’s position appears to be that LinQ was already operating in breach of Apple’s terms before the investment, and that the VC would not have invested had it known. ・As a result, there is currently no clear path for whoo to return to the App Store. LinQ is in a legal dispute with one of its investors, and the deposited funds from that investment have been frozen and are unusable.