- AI labs and data vendors are buying workspace data and code from companies that have shut down.
- SimpleClosure said 47% of its wind-down deals now include code or data sales, according to MIT Technology Review in October 2026.
- Whoever controls the company's assets in the wind-down, such as a trustee or assignee, normally runs the sale.
- Proceeds usually go to creditors and investors first, and employee privacy objections are a real risk.
A new asset for wind-downs
MIT Technology Review reported in October 2026 that AI labs are buying data from dead startups, with SimpleClosure handling more than 150 deals and expecting to return more than $10 million to startups by the end of 2026, and 47% of its deals including code or data (MIT Technology Review). Shutdowns were reported to be rising 26% to 56% a year, based on Carta and AngelList estimates.
What sells
- Source code with history
- Email, Slack and Teams archives
- Documents and workspace data (Google Workspace, Notion, Figma, calendars)
- Support tickets and CRM activity
Who runs the sale
In a formal process (bankruptcy, assignment for the benefit of creditors, administration), the trustee, assignee or administrator controls assets and runs the sale, often with court oversight, as in the Spirit Airlines auction (TravelPulse). In an informal wind-down, the board and remaining officers decide, subject to creditor and investor rights.
Risks specific to closed companies
- Employee privacy. Spirit's flight attendants' union objected on privacy grounds (MIT Technology Review). Former staff may object to their messages being sold.
- Customer promises. Privacy notices still apply after closure.
- Lost context. Fewer people remain who know what the data contains, which makes exclusions harder.
- Records retention. Some records must be kept for legal reasons regardless of sale.
How to approach it
Inventory early, before accounts are shut off. Agree exclusions (HR, health, privileged, client confidential). De-identify. Run a short, competitive process with vetted buyers. Document everything for creditors.
Questions
Can founders sell data after the company closes?
Only if they control the assets. Once a trustee or assignee is appointed, they run the sale.
Do employees get paid from data sales?
Usually not. MIT Technology Review reported that proceeds typically go to senior creditors and investors.