Newchip Accelerator & Andrew Ryan: The Final ASTRALABS Hearing Legal Update

Reflecting on a year that tested my resolve and pushed me to my limits, it’s with a measured sense of accomplishment and relief that I share a pivotal moment for ASTRALABS, Newchip, and the broader startup and investor community.

The United States Bankruptcy Court for the Western District of Texas has rendered a final decision in our case, marking not just a legal victory but a vindication for myself and my shareholders for everything we endured in 2023.

The court’s decision allows us to move ahead with the unencumbered sale of our $760M+ warrant portfolio, a crucial step in securing the future we’ve envisioned for our stakeholders. It’s a testament to our collective belief in what we built and the integrity with which we’ve navigated this last year.

I’m immensely grateful for the unwavering support of our shareholders, the wider investor and startup community, and everyone who stood by us. Your belief in our mission has been a beacon during the most challenging times. As we turn this page, my focus is on the future. This ruling isn’t just a close to a chapter; it’s a new page for our investors and stakeholders as we bring them returns from the sale of our portfolio.

Even though the world and economy is changing, I hope that each of them remains dedicated to disrupting the norm, and maintains their ambition to make enduring impacts on our society through investments in the future.

Thank you all for your steadfast support and belief in our collective vision, particularly through the tumultuous period marked by the peak of corporate and anti-CEO cancel culture amidst the ZIRP bubble collapse in 2023. Together, we navigated the tech collapse, a coup, and emerged more resilient and united than ever.

You can read up on our final court hearing here, also pasting it below this:

ASTRALABS Under Andrew Ryan’s Leadership Prevails in Final Newchip Warrant Sale Hearing

Parent Company of Newchip Accelerator, Prepares for Strategic Divestiture of $760M Warrant Portfolio, Charting a Renewed Path for Stakeholders.

In a definitive ruling by the United States Bankruptcy Court for the Western District of Texas, Austin Division, the Honorable Judge Shad Robinson ruled in favor of ASTRALABS, the parent company of the Newchip Accelerator, in Case №23–10164-smr, authorizing the unencumbered sale of its investment warrant portfolio, thereby releasing it from all liens, claims, and legal encumbrances. This decisive judgment, quashing challenges to the sale of ASTRALABS’ warrant asset portfolio, unequivocally affirms the company’s adept strategic management and innovative handling of the Newchip warrants, marking the onset of a revitalized strategy aimed at enhancing creditor and investor returns.

In the judgment, Judge Robinson laid out several pivotal directives: the Warrants are now distinctly separated from and not subject to any obligations linked to prior client agreements, enabling the trustee to proceed with their sale free from any performance obligations or penalties for non-compliance specified in client contracts. Moreover, ex-clients must prove adherence to all reporting requirements detailed in the Warrant agreements for them to be considered expired or to avoid their extension to a 10-year term. Additionally, the trustee is relieved from the obligation to observe any right of first refusal; thus, the trustee has the authority to sell Newchip’s warrant without needing to offer a right of first refusal, a right that will now be transferred to the purchaser of the warrant.

Andrew Ryan commented on the ruling, stating, “Reflecting on this nine-month legal challenge, it was the toughest period of my life to be honest, but we have not only emerged victorious but have also been fortified by the steadfast support of our shareholders and the wider investor and startup community. This solidarity and shared commitment to our mission played a pivotal role in navigating the intricacies of the bankruptcy proceedings. This court’s ruling represents a monumental victory for Newchip, ASTRALABS, and unequivocally validates our decisions as a leadership team. This judgment opens the door for us to capitalize on our warrant portfolio, aiming to surpass our ambitious nine-figure sales goal and catalyze this substantial win.” Ryan further added, “The court’s unambiguous validation of the Warrant Portfolio’s value and integrity, as meticulously documented in the bankruptcy by Sputnik ATX’s warrant report, lays the groundwork for maximizing the proceeds from the imminent sale, with the objective of delivering substantial returns to creditors and shareholders in the upcoming months. This essential verdict facilitates a methodical sale of assets, dedicated to maximizing returns for all stakeholders and achieving the optimal sale value of ASTRALABS’ portfolio holdings.”

Joshua Lawton, an early angel investor and a leader at Newchip over the years that testified at the hearing, offered his insights, saying, “Throughout my tenure investing in startups, I’ve seen many founders falter under pressures akin to what we’ve faced. Andrew Ryan, on the other hand, has showcased an extraordinary level of commitment to both his shareholders and employees, all of whom have poured their hearts and souls into our collective vision and the mission to empower founders. Despite the hurdles this year has presented, my admiration for the employees, investors, and clients-who’ve shown unwavering support and patience throughout this intricate legal journey-has only deepened.”

Andrew Ryan’s final statement underscores his and his investors’ shared goals moving forward: “Moving forward, my aim, in collaboration with my investors, is to focus efforts on developing groundbreaking technologies at ARVC that disrupt the norm and make significant, enduring impacts on society. This ambition not only promises to advance us technologically but also sets us on a path to reach the stars.”

Judge Robinson’s ruling and prior case documents may be accessed via PACER:

or here:

For more information on the warrant sale process or bidding procedures, please contact Chad Harding at Peak-Tech Investment Bank

Access the Final Warrant Report here:

The Abridged Story of Newchip Accelerator & Andrew Ryan: A Journey of Innovation, Resilience, and Vision in Summary

As we close the chapter on Newchip’s remarkable journey, it’s important to reflect on the key milestones that defined its path and shaped its legacy. From its inception as a pioneering equity crowdfunding platform to its evolution into a global accelerator, Newchip’s story is one of unwavering commitment to democratizing access to startup investing and empowering entrepreneurs worldwide.

Launched in 2016 by visionary founder Andrew Ryan, Newchip set out to disrupt the status quo of venture capital. Leveraging the JOBS Act, the platform aimed to break down barriers and open up startup investing to the masses. The vision was bold: to create a platform that could simplify the complex world of startup investing and connect everyday investors with groundbreaking opportunities.

The early days were marked by both triumphs and challenges. As Newchip gained traction, attracting a growing community of investors and promising startups, it also navigated the complexities of a rapidly evolving regulatory landscape. Questions around investor protections, due diligence, and the sustainability of the model were constant companions on the journey.

But Newchip persevered, buoyed by the belief in its mission and the support of its early adopters. The platform’s unique value proposition — a user-friendly interface, rigorous vetting processes, and a commitment to transparency — set it apart in a crowded field.

As Newchip’s reputation grew, so too did its ambitions. The decision to expand into a global accelerator model in 2018 was a pivotal moment, marking a shift from facilitating investments to actively nurturing and supporting startups. The launch of the Newchip Accelerator, the first fully remote accelerator program, was a bold bet on the power of online collaboration and the potential to support entrepreneurs regardless of geography.

The years that followed were ones of explosive growth and impact. As the pandemic hit and the world moved online, Newchip was uniquely positioned to be a lifeline for startups. With its established online infrastructure and remote mentorship model, the accelerator became a beacon for founders navigating unprecedented uncertainty.

The numbers speak for themselves. Over 3,000 startups graduated from Newchip’s programs, collectively raising over $1 billion in funding. The accelerator’s global reach, spanning over 100 countries, was a testament to the universal appeal of its model and its commitment to supporting underserved entrepreneurial communities.

But the journey was not without its challenges. Scaling at speed brought growing pains, from maintaining program quality to managing the expectations of an increasingly diverse cohort. The very attributes that set Newchip apart — its lean operations, its accessibility — also made it a target for scrutiny and skepticism.

The latter half of 2022 brought new trials, as the global economic downturn and the end of the ZIRP era signaled a reckoning for the tech industry. Despite Andrew Ryan’s prescient warnings and attempts to steer the ship toward calmer waters, the headwinds were strong. Internal tensions, combined with the shockwaves of the Silicon Valley Bank collapse, forced Newchip into the uncharted territory of bankruptcy.

It was a humbling and challenging period, marked by legal complexities and personal attacks. Yet even in the darkest of times, the Newchip spirit endured. The team’s resilience, the support of the startup community, and the unwavering belief in the mission were beacons of light.

And now, as Newchip emerges from the crucible of the past year, it does so with a renewed sense of purpose and possibility. The recent court ruling, vindicating the company’s management of its investment portfolio, opens the door to a new chapter. The planned sale of the warrant portfolio promises to deliver returns to stakeholders and fuel the next phase of innovation.

Looking ahead, the legacy of Newchip is one that will be measured not just in financial terms, but in the lives touched and the ecosystems transformed. The entrepreneurs supported, the innovations brought to market, the investors empowered — these are the true measures of impact.

And while the Newchip chapter may be coming to a close, the story is far from over. The lessons learned, the relationships forged, and the vision of a more inclusive and impactful startup ecosystem will continue to shape the future. Under Andrew Ryan’s leadership, the focus now turns to new horizons — to groundbreaking technologies and audacious goals that push the boundaries of what’s possible.

In the end, Newchip’s journey is a testament to the power of resilience, innovation, and unwavering commitment to a vision. It’s a story of daring greatly, of challenging the status quo, and of believing that entrepreneurship can be a force for good in the world. And as we look to the future, it’s a story that will continue to inspire and guide us, reminding us that even the loftiest of dreams are within reach if we have the courage to pursue them.

The Newchip legacy, ultimately, is one of hope and possibility. A reminder that in the face of adversity, in the midst of uncertainty, there is always a way forward. And that way, more often than not, lies in the power of community, the strength of shared vision, and the unshakeable belief that together, we can build a better world, one startup at a time.

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