Startup Builder.ai Overestimated Sales by 300% to Creditors (1)

When Builder.ai was seeking an emergency loan last year, the startup gave lenders a revenue forecast that proved to be four times its actual sales, people familiar with the matter said.

A group of creditors, led by Israeli firm Viola Credit, were originally told that Builder.ai projected sales of $220 million for 2024, the people said, asking not to be identified because the information isn’t public. The company later disclosed that the actual revenue amount for the year turned out to be about $50 million, they said.

That revelation was one of the factors that ultimately led the lenders ...