RightNow, once heralded as one of Germany's leading legaltech startups, has hit turbulent waters, filing for bankruptcy amid growing financial difficulties. The company, well-known for buying legal claims from consumers and representing them to win compensation, was co-founded by Phillip Eischet, Torben Antretter, and Benedikt Quarch, with early support from notable investors like Carsten Maschmeyer.
On February 25, 2023, RightNow submitted its insolvency application to the Düsseldorf District Court. Eischet confirmed the bankruptcy, stating, "Due to the lack of financing sources, this was unavoidable." The company promised rapid responses to customer claims, yet its inability to secure necessary funding led to this abrupt end.
RightNow aimed to transform consumer rights enforcement by buying claims—particularly against airlines and service providers—promising clients quick payouts. Over the years, the startup claimed to help over 500,000 consumers reclaim losses resulting from incidents such as canceled flights. Their innovative, collective lawsuit model reduced individual burdens, but it was not enough to keep the company afloat.
At its height, RightNow was flourishing. The venture raised millions through multiple funding rounds, garnering attention for its ambitious goals. The startup was even noted for its excitement at securing a new office space with around thirty employees just before the COVID-19 pandemic hit. Its story was often cited as emblematic of Düsseldorf's burgeoning startup scene.
According to Eischet, the company encountered significant challenges when the expected financing did not materialize. "This once great startup being hit by insolvency is quite surprising," remarked one prominent figure from the Düsseldorf startup community, reflecting on the impact of RightNow's troubled fate on the city’s entrepreneurial spirit.
Eischet shared how RightNow had previously engaged with financial sources from Liechtenstein and the Cayman Islands but reported, "We haven't received liquidity from those funds for over two years." Without new capital influx, it failed to purchase new claims or meet operational expenses.
Upon entering bankruptcy, the court appointed attorney Jan-Philipp Hoos as the provisional insolvency administrator, responsible for evaluating RightNow's situation. Hoos stated he was still gathering information and could not yet comment on the specifics of the case.
The collapse of RightNow follows other misfortunes within the Düsseldorf startup ecosystem, including the fall of Corbiota and Holocafé just months prior. These events conjure questions about the sustainability of the startup culture amid challenging economic conditions and the difficulties faced by fledging companies.
Interestingly, even amid this crisis, Eischet maintained optimism about the future of legaltech, asserting, "We believe firmly in the future of the business model." He recently established RN Inkasso GmbH to shift focus from the damaged RightNow brand, indicating this new venture would operate on more sustainable financial structures, partnering with international funding entities rather than relying on troubled funds.
Under this new model, RN Inkasso GmbH would serve as a mediator, freeing Eischet and his team from the complications of regular loan repayments and ensuring they're less reliant on court timelines. Notably, the company has already initiated collective lawsuits—most famously, against Elon Musk's X (formerly Twitter)—aiming to secure damages for users affected by data breaches. "It's had time to establish itself and we will continue operating on this model," Eischet remarked confidently.
With the collapse of RightNow and the establishment of RN Inkasso, the future of the founders continues to pivot. Their experiences encapsulate the rollercoaster of the startup world, and as many businesses face uncertainty, their story reflects enduring resilience and determination. Legaltech continues to evolve, and the drive to simplify the pursuit of consumer justice remains formidable, as Eischet prepares for what lies ahead: "We believe firmly in the future of the business model."