In early 2025, news reports emerged that FTI Consulting, an advisory firm, was investigating the company. These reports estimated that eFishery had only about US$50 million remaining in cash, and that investors may receive as little as 9.5 cents for every dollar they invested. The company hadn’t filed audited financial statements with ACRA since 2020, yet over US$300 million was invested into the company.
13 investors made profits in eFishery
While the potential losses likely to be borne by some investors in eFishery have been widely reported, less has been said about shareholders who may have profited. Analysis of the company’s ACRA share filings shows that some investors in the company may receive substantially better returns, many from secondary share transfers.
What the data tells us
Negative signals?
Earlier investors or founders selling shares in a startup is not particularly unusual, but it can be viewed in different ways depending on the context and timing. Historically, when founders sell shares after early funding rounds it may be taken as a negative signal, suggesting a lack of confidence in the company’s future or misaligned interests with investors. Sales of shares by earlier investors is also not uncommon, but it typically requires careful timing and negotiation to avoid negative signals about the state of a company.Aside from optics, when buying and selling shares there are also possible legal considerations. Private company transactions can be covered by insider trading laws, just as those at public companies are. (Refer to Section 218 the Singapore Securities and Futures Act 2001)