The founder of one of the North East's most promising companies has given a candid account of how his company was nearly lost after suffering a series of major setbacks.
Atif Syed, the scientist behind innovative North East robotics firm Wootzano, took to social media to explain how a barrage of customer defaults, delayed payments and what he said were "broken promises" put the business through one of its toughest moments in its seven-year history. The Tyneside-based maker of automated systems for food packaging has enjoyed fast growth in recent years, driven by interest in its robotic skin technology and a string of multimillion-pound orders from around the world, including customers in the US and Japan.
Last year the firm was named Business of the Year at the North East Business Awards - a title which followed its move from County Durham to North Tyneside's Cobalt Business Park following growth. In January, Wootzano raised more than £380,000 in a crowdfunding campaign that surpassed its £358,000 target.
But Mr Syed has also revealed that unnamed financial backers of his firm withdrew support earlier this year, causing further challenges. The entrepreneur said some investors had "turned on" the business and attempted to take control, but that, after a restructuring, Wootzano was "coming out the other side".
He said: "Earlier this year, we went through something most people will never see, and few would survive. At one point, we were staring at the loss of everything we had built, including a £50m enterprise and over £30m in personal equity value on paper.
"A wave of unexpected customer defaults, delayed payments, and broken promises triggered one of the toughest moments in our company's history. It didn't just test the business, it tested everything.
"As if that weren't enough, even some of our financial partners withdrew support at our most vulnerable point, right when we needed stability to recover. But again, we found a way forward, and we'll never forget the partners and creditors who did support us. You know who you are. And thank you.
"Likewise, a deep thank you to the customers who honoured their commitments and stood with us, your integrity helped keep the lights on. It also revealed who was truly aligned."
Mr Syed said he made the challenges public in the hope that he could encourage other founders to keep going in the face of adversity. He added: "Some investors didn't step up, they turned on us. While we fought to save the company, a few attempted to take control of the business and replace leadership at its most vulnerable moment. It didn't work. Because we didn't fold.
"We stood by our team. Not everyone stayed. Some saw the pressure and walked away, or worse, took advantage and then left. But the ones who stood firm? They're the reason we're still here. The core stayed, fought, and helped rebuild. That loyalty matters more than any CV.
"We kept building. We restructured, rebuilt, and are still fighting, but we're coming out the other side. Today, we're: starting to deliver major automation projects worth £5m; closing international robot sales and shipping robots to various countries; working with governments to fund adoption of our technology and partnering to drive British agri-tech into global trade strategy."
