Swedish startup Trig made a splash in esports recently, sponsoring players and making big promises on the back of its purported millions of monthly users. But if you were wondering where those users were coming from, you’re not alone. The company’s former auditor was asking the same question.
Trig broke into the esports scene with plenty of bluster late last year, promising, among other things, a series of esports tournaments in Dubai, reality television shows following the organization’s sponsored teams, and a future competitive circuit specifically compared to Formula 1. The announcement was followed by partnerships with Enrique “xPeke” Cedeno Martinez’s League of Legends team Origen, StarCraft 2 player Jang “MC” Min Chul, and others.
But there were many questions left unanswered in the wake of Trig’s sudden appearance and grand proclamations. Now, some of those questions are being brought up in earnest by those close to the organization.
Swedish website Realtid reported early today that Trig’s auditing company, PricewaterhouseCoopers (PwC), had chosen to part ways with Trig shortly before the release of the company’s annual report.
Auditor Mattias Celind wrote in a report to the Swedish Companies Registration Office that Trig had failed to provide basic information necessary for an audit. The most glaring piece of information is the source of the website’s supposed millions of active users, which the company has touted as the reason behind its billion-dollar evaluation.
Celind specifically refers to his company’s analysis of the user base to show “that it is nothing more than a compilation of email addresses.” Celind also questioned the supposed potential for distribution of the TrigMoney application, purported to generate significant future revenues for the company.
The news of PwC’s departure was shortly followed by an announcement on BuisinessWire that Trig would be looking to hire a new auditor, Per-Åke Bergstrands Revisionsbyrå AB. The move was pending majority approval at the company’s next shareholders meeting.
With Trig’s supposed userbase and future source of revenue both brought into question, Trig’s Anothony Norman reached out to Realtid to express that he was “extremely surprised” by PwC’s claims, which he refuted and blamed on the auditing firm’s “lack of skills or understanding of the product.”
Concerns were only furthered by Swedish website Nyheter, which also published a report earlier today indicating that investigations were ongoing regarding the validity of Trig’s claims, as the company’s stock pricing on the Frankfurt Stock Exchange has come into question.
The article also notes that Trig’s lawyer Lars Hellewig left the company just days before PwC chose to disassociate themselves from Trig. And while no resolution is currently in sight, the rising tide of uncertainty surrounding the ambitious company doesn’t bode well for esports fans who had hoped to see their numerous promises fulfilled.
Trig did not respond to a request for comment by publication time.
Image via Trig
Published: Apr 20, 2015 02:34 pm