Balderton Capital and AVP, together with other investors, suffered a defeat at a strike‑out hearing in an unfair prejudice lawsuit brought by the former CEO and founder of Cognism. The court dismissed their attempt to block the claim, leaving the plaintiff’s case to proceed.

The case centres on alleged misconduct surrounding Cognism’s early financing, with investors accused of actions that disadvantaged the founder. Specific financial figures were not disclosed, but the loss removes a defensive barrier for the plaintiff and may expose the investors to further litigation costs.

For venture‑backed companies, the ruling underscores the importance of transparent founder‑investor relations and the legal risks of perceived prejudice. The decision could prompt tighter governance practices in future UK tech funding rounds.