A closer look at the downfall of AAQUA and its impact on its workforce.
“The culture at AAQUA was so welcoming and encouraged innovation, all fully supported by the CEO, Robert (Bonnier). This all sounds like your dream job, right? Yeah. I thought so too,” sighs Olivia, who is in her 30s and one of the 175 recently retrenched employees of AAQUA.
AAQUA is the startup behind the namesake app poised to reshape social media platforms, “power your passions,” and ultimately be a force for good—if it ever launched. In the cut-throat world of startups, failures are common; around 90 percent fail. Yet, what makes AAQUA notable in the graveyard of failed startups is that no one thought this well-funded venture would collapse. AAQUA attracted talent from top tech companies for an app that never materialized.
Fast forward four years, and the company faced bankruptcy, leaving employees unpaid for months. Once on the brink of transforming the social media landscape with a noble mission, the company failed to practice that ethos for its own employees. The signs of trouble were apparent long before the downfall, with cracks appearing in the foundation.
Promises and Expectations
From the start, AAQUA presented a shiny vision for change, typical of ambitious startups. They claimed their service would be revolutionary, offering ingenious solutions to longstanding problems. “I was drawn to AAQUA because they had this really good idea of creating a utopian social media platform centered around passion communities,” explains Olivia, an engineer with the company since 2021.
“They aimed to be less spammy than existing platforms and to create a self-sustaining circular economy,” she continues, recalling early interviews that depicted AAQUA not as another TikTok but something entirely new.
Jack, another employee who has been with AAQUA since 2021, echoes this sentiment. “AAQUA was built on the belief that current social media giants had a conflict of interest, as user data was monetized for profit,” he explains. “AAQUA would avoid this by not showing ads; instead, users’ data would only be used for personalized content recommendations.” But if AAQUA doesn’t serve ads, how does it generate revenue?
In addition to a promising vision, AAQUA lured employees with generous salary packages. Managerial roles offered starting salaries of S$8K to S$9K monthly, while junior positions like community managers earned between S$4.5K and S$5.5K. Employees enjoyed excellent health insurance, an extensive leave package of 23 days, plus an additional six days of parent-child leave, amounting to 29 days in total.
Another enticing incentive was the General Availability (GA) bonus. “The GA Bonus was significant. If the app launched without beta testing and became available to the public, there would be up to a 50 percent bonus on your yearly salary,” Olivia reveals. “If you earned S$100K annually, that’s an additional S$50K.”
Initially, the GA bonus was a lucrative 75 percent, later reduced to 50 percent due to continuous app launch delays—possibly the first red flag. Nevertheless, the hope of eventually receiving this bonus kept many employees committed, even as launch dates slipped from March 2021 to October 2022.
A Culture of Innovation Amidst Uncertainty
Despite working on an app that seemed perpetually delayed, many employees accepted this as typical for tech startups, where processes can be chaotic. Besides financial compensation, AAQUA was known for its vibrant culture, particularly appealing to those in technical roles. “The culture attracted many who came from FAANG companies. It was a high-caliber team and a learning environment,” Olivia reminisces.
Aaron, a newer employee, agrees, noting, “It felt like everyone knew each other, and there were frequent gatherings. The culture was great.” Mondays were designated for experimentation, allowing teams to explore ideas freely. “You could work on anything, then present it to the team. There were no hard rules,” Olivia shares.
On the surface, AAQUA was a desirable workplace with chic office spaces, a positive culture, and attractive salary packages. But cracks began to show.
The First Signs of Trouble
While the startup atmosphere encouraged creativity, employees grew anxious as the app remained undeveloped for two years. A lack of tangible progress left many concerned, as two years of work without a product can be detrimental to one’s résumé.
The delays were partly due to design pivots. Significant changes in the app’s interface occurred during late 2021, causing long periods of ideation and scrapping previous concepts. “You start with task A, but they change their minds, making it feel like all your efforts were wasted,” Olivia laments.
Aaron, whose role was contingent on the app’s launch, found himself underutilized. “My position became redundant for most of my time there,” he says. Despite this, many chose to stay due to the high salaries. “Eventually, people realized that even with high pay, there was no real progress,” Aaron adds.
AAQUA acknowledged the situation, stating that their commitment to safety and integrity necessitated a comprehensive team and thorough processes. They claimed that team members were actively creating original content for early Passion Communities.
The Unraveling
However, progress felt painfully slow. “We conducted multiple tests with friends and family, but the feedback often indicated that the app felt outdated,” Aaron reveals. Despite internal criticisms, CEO Bonnier remained unconcerned. The prevailing sentiment among employees was a strong desire to launch the app and move forward.
Compounding issues, Bonnier was a mysterious and unpredictable figure. “He rarely communicated openly about the company’s status,” Aaron notes, while AAQUA claims he was in daily contact with senior staff. Transparency issues grew, culminating in AAQUA’s eviction from its office due to rental disputes.
“Employees were locked out without prior notice,” Jack recalls. Despite AAQUA’s claims of timely rent payments, their relationship with the landlord soured. The situation escalated with delayed salary payments, further straining morale.
“There were multiple late payments. One month, we were told it was due to bank holidays in Belgium. It seemed improbable that payroll could be affected by a public holiday,” Jack shares. AAQUA acknowledged some late payments but maintained they did everything possible to ensure timely salaries.
A Worldwide Freezing Order
On July 29, 2022, an email from AAQUA announced a Worldwide Freezing Order (WFO) had been issued, halting all salaries. This legal action stemmed from a lawsuit filed by investor Nick Candy, alleging Bonnier made false representations to secure investment.
As employees braced for the fallout, Bonnier’s lack of communication heightened anxiety. “We were caught off guard by the WFO. We knew something was off, but this was unexpected,” Aaron reflects.
Despite being told updates would be forthcoming, communication was sparse. A company-wide call was scheduled, but Bonnier failed to appear, sending legal consultants instead. “It felt like they were hiding something,” Olivia comments.
The Final Nail in the Coffin
At 1:28 AM on August 31, 2022, an email announced AAQUA’s bankruptcy. Employees were immediately retrenched, with a skeletal crew remaining to wrap up loose ends. “Everyone kind of saw it coming,” Olivia states.
Although a “curtain closing” event was planned, it was canceled, further demonstrating Bonnier’s absence from the situation. With two months of unpaid salaries and growing financial stress, many employees scrambled for new jobs.
“I have three kids and bills piling up. We were down to our last dollars,” Olivia admits. Though AAQUA eventually paid July salaries, employees were still owed for August and notice periods.
Despite the turmoil, some former employees reflect positively on their time at AAQUA, viewing it as a valuable learning experience. “It was a good opportunity, despite how it ended,” Aaron concludes.
As former employees move forward, they’re eager to put AAQUA behind them, having learned hard lessons about the volatility of the startup world.
