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The US start-up Augustus Intelligence has filed for bankruptcy.

This is based on information from a bankruptcy court in the US state of Delaware.

Thereafter, the company filed an application under "Chapter 11" of US bankruptcy law on Saturday, which provides for the restructuring or reorganization of a company.

In addition, the US Securities and Exchange Commission has been investigating Augustus Intelligence since March 15.

According to a report that the company filed in connection with the bankruptcy filing and that WELT has viewed, the SEC is investigating the behavior of former managers in raising capital.

The report also sets out the reasons for Augustus Intelligence's bankruptcy.

The company raised around $ 33.5 million from 35 to 40 investors in 2019.

However, two other investors withdrew their $ 80 million support last year.

According to the company, this worsened the financial situation.

Cash holdings "dangerously low"

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A new board of directors and management tried to cut costs.

Still, the company had revenues of just $ 2 million with expenses of $ 30 million.

The cash holdings are "dangerously low".

According to the company, reporting on Augustus Intelligence in German media about the role of ex-defense minister Karl-Theodor zu Guttenberg and CDU young star Philipp Amthor is another reason for the bankruptcy.

The former President of the Office for the Protection of the Constitution, Hans-Georg Maassen, was also associated with the company.

Amthor and zu Guttenberg left the company's Board of Directors in June and July 2020, respectively.

Amthor returned its stock options, calling lobbying for the company a mistake.

As reported by “Spiegel”, Amthor wrote a letter to Federal Economics Minister Peter Altmaier in 2018, asking for political support for Augustus Intelligence.

In the course of the affair, Amthor also renounced the candidacy for the state chairmanship of the CDU Mecklenburg-Western Pomerania.

Augustus Intelligence offers development and licensing of software applications with artificial intelligence.

The company claims to have 33 full and part-time employees and is located in the One World Trade Center in New York.

There are also subsidiaries in France, Italy and Germany.