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Dutch Solar Startup Soly Files for Bankruptcy After €30M Funding Round

Groningen, Netherlands-based solar energy company Soly has filed for bankruptcy, just over a year after raising €30 million in funding led by Canadian cleantech investor ArcTern Ventures.

The bankruptcy petitions for Soly Holding B.V. and Soly NL SSC B.V. were filed by the company and approved this week by the District Court of Groningen, according to a LinkedIn post from co-founder Milan van der Meulen. The announcement marks a swift downfall for a startup that had raised significant capital to scale its solar energy solutions across Europe.

Soly, founded by brothers Milan and Patrick van der Meulen, had positioned itself as an innovative provider of solar panels and energy storage systems for residential and commercial customers. The company's €30 million Series A round in September 2024 was seen as a vote of confidence in Soly's technology and growth potential.

However, industry sources indicate that Soly struggled to convert its pipeline of customer orders into profitable revenue streams, hampered by supply chain disruptions and competitive pressures in the crowded European solar market. The startup's ambitious international expansion plans appear to have outpaced its ability to execute efficiently and manage costs.

"We are deeply saddened and disappointed by this outcome," said Milan van der Meulen in his LinkedIn post. "It is difficult for us to accept that loyal employees, partners, and other stakeholders will be impacted by this failure."

The collapse of Soly comes at a challenging time for the renewable energy sector, which has faced headwinds from rising interest rates, policy uncertainty, and intensifying competition. While solar power continues to gain traction globally, smaller players without deep pockets or operational resilience can struggle to navigate the complexities of scaling a capital-intensive business.

Industry analysts note that Soly's downfall underscores the need for solar startups to have a clear path to profitability, strong risk management, and the ability to adapt quickly to market conditions. The company's failure may prompt greater scrutiny from investors on the financial viability of solar energy upstarts, even those with innovative technologies.

For ArcTern Ventures and Soly's other backers, the bankruptcy represents a significant setback in their portfolio. The failed investment will likely prompt a reassessment of their due diligence processes and investment theses around emerging players in the renewable energy space.