after sec investigation, curastory founder resigns, hires replacement

SEC Accusations and Leadership Transition at Curastory

The Securities and Exchange Commission has levied accusations against Curastory, a content monetization startup, alleging inflated revenue reports and inaccurate client number representations, as documented in filings reviewed by TechCrunch.

Following a settlement agreement reached with the SEC, Tiffany Kelly, the founder and previously serving CEO of Curastory, has stepped down from her position. She has been succeeded by Dave Dickman, formerly the CEO of the influencer marketing platform, Tagger.

New Leadership and Future Plans

Under Mr. Dickman’s direction, the company is actively pursuing fundraising opportunities, formulating international expansion strategies, and implementing product enhancements, according to statements from both Kelly and Dickman to TechCrunch.

The terms of the settlement explicitly prohibit Ms. Kelly from holding a board position or executive role at any company seeking capital for a period of ten years. A draft of the agreement, examined by TechCrunch, indicates that Ms. Kelly consented to these conditions without admitting guilt or contesting the allegations.

While remaining a significant shareholder and continuing as an advisor, Kelly expressed that relinquishing her CEO role was essential for the company’s continued operation and success.

Curastory’s Platform and Growth

Established in 2021, Curastory operates as a platform designed to facilitate content creators in monetizing their video content. The platform currently supports approximately 400,000 creators.

It enables advertisers to purchase in-video advertising space directly from creators, while also providing performance tracking and supplementary tools, such as video editing capabilities.

To date, the company has secured approximately $3 million in funding from investors including Lightspeed’s Scout Fund, Feld Ventures, and Mindspring Capital. PitchBook also notes Curastory’s participation in accelerator programs like Techstars and the SPARK Program, a collaboration between AMEX Ventures and Project W.

SEC Investigation and Settlement Details

“The journey has been quite eventful,” Kelly acknowledged. As part of the settlement, she has also agreed to pay a financial penalty.

Kelly stated she was unaware of the factors that initiated the SEC investigation, explaining that she received a subpoena in June and subsequently received a notice of violations from the SEC in January.

She expressed hope for understanding and leniency, noting that stepping down was a forced decision. Despite relinquishing the CEO role, she retains majority ownership and welcomes the removal of fundraising responsibilities from her purview.

Succession and Future Vision

Kelly highlighted her satisfaction in selecting her successor, identifying Dickman through an executive search firm. She emphasized the importance of finding a leader who possessed strong character, a commitment to preserving the company’s integrity, and a deep understanding of the underlying technology.

“Early-stage companies inevitably encounter numerous challenges. Ultimately, this situation has been resolved,” Dickman stated to TechCrunch. He described a complementary dynamic with Kelly, drawing a parallel to yin and yang, citing his extensive experience in the creator economy and early-stage ventures.

He characterized Kelly as analytical and product-focused, while positioning himself as a more strategically-minded leader.

“I believe our combined strengths will effectively propel the company forward,” he added.

Early Positive Signs and Expansion Plans

Kelly is already observing positive changes, noting that Dickman’s fundraising presentation reached a venture capital fund, who then shared it with another firm, prompting them to evaluate the product.

“I haven’t experienced that level of support in fundraising, which, as many women – particularly Black women – can attest, is a common obstacle when seeking venture capital,” she remarked. “This has been a revealing experience.”

With Dickman at the helm, she anticipates a promising future for the company. Curastory is actively planning expansion into Canada, Australia, and the United Kingdom.

Product Development and Innovation

The company is also developing new features to support creators on platforms such as Spotify video and integrating AI into its advertising technology to enhance its capabilities. Currently, its video enablement tools support YouTube, TikTok, and Facebook Watch.

Furthermore, plans are underway to introduce a more sophisticated attribution model for advertisers, reducing reliance on influencer promo codes.

“These are the immediate priorities regarding product development, sales, and global expansion,” Kelly explained.

Reflections on Leadership and Future Endeavors

Despite the unexpected conclusion to her tenure as CEO, Kelly shared with TechCrunch, “Serving as a founder and CEO is an incredibly humbling and rewarding experience.” She expressed her desire to share her insights and experiences with others, “particularly women and people of color.”