The liquidators of failed adtech startup Metigy, which plunged into administration in July just 20 months after raising $20 million in a Series B, have taken a $1.45 million blow on the sale of a mansion that company funds was purchased by the startup’s now-bankrupt founder, David Fairfull.

Fairfull purchased the 48-acre, 4-bedroom estate in the Southern Highlands, south of Sydney, for $7.7 million last November. It was sold at auction last week for $6.25 million.

But the good news for creditors and Metigy group liquidator Cathro & Partners is that the second home he bought, a 6-bedroom Mosman mansion with views over Sydney Harbor, reportedly sold last month for at least $12 million – $1.5 million over the $1.5 million purchase price. 10.5 million in September last year.

Fairfull took out a $7.7 million loan from Metigy to purchase the two properties, which had combined $12.74 million mortgages, leaving approximately $3.76 million in potential equity for creditors.

Cathro & Partners have been through the wreckage of Metigy, and are also working with corporate regulator ASIC over concerns about the company’s operations. A report prepared by the liquidators last month said that: “Metigy appears to have generated no revenue since its inception.”

It also appears that the company has not filed any statements of operations, prepared any formal financial statements, or filed any tax returns.

“During the year prior to our appointment, Metigy raised capital in excess of $20 million from various investors, which appears to have been used to meet the day-to-day trading needs of the group entities and a loan to the CEO that was used to purchase personal property” , according to the Cathro & Partners report.

Metigy has raised a total of $27.1 million since inception, including $20 million in a November 2020 Series B round led by Cygnet Capital. The other lenders included Regal Funds Management, OC Funds, Five V Venture Capital and Thorney.

The company reportedly did not raise funds again for a $1 billion valuation until May of this year.

Metigy was founded in 2015 by former We Are Social managing partner David Fairfull and Johnson Lin, who claimed to give small businesses access to the same data and strategic insights as leading marketing teams.

Fairfull was declared bankrupt last month – his second bankruptcy in less than 20 years.