Investor Seeks $1.15 Million From Former Flipcause Executive Chairman
One of Flipcause’s largest investors is pursuing more than $1.15 million from the company’s former executive chairman, Emerson Ravyn, following the nonprofit software provider’s collapse and ongoing bankruptcy proceedings.
Grand Avenue Advisors, a private equity firm, filed a lawsuit against Ravyn on Jan. 27 in New York Supreme Court, Kings County. The complaint alleges that Ravyn personally guaranteed a promissory note issued to Flipcause and is therefore liable for repayment after the company defaulted.
The lawsuit comes as Flipcause’s bankruptcy case moves toward liquidation. Earlier this month, court-appointed trustee Jeffrey Testa requested that the company’s Chapter 11 case be converted to Chapter 7, citing a lack of revenue and mounting administrative expenses. Under a proposed settlement, Grand Avenue agreed to assign its claims against Ravyn to the bankruptcy estate.
Loan Default at Center of Dispute
According to bankruptcy filings, Grand Avenue Investments LP – Series 14B, an investment vehicle owned by Grand Avenue Advisors, loaned Flipcause $600,000 in August 2023.
The company was scheduled to begin monthly repayments in August 2025 but allegedly failed to make payments in August, September, and October of that year. Grand Avenue declared the loan in default and demanded immediate repayment of the outstanding principal and accrued interest on Oct. 24, 2025.
The lawsuit claims that Flipcause and Ravyn now owe at least $1,155,290.35. Grand Avenue argues that Ravyn breached his personal guarantee by failing to satisfy the debt after the company defaulted.
Bankruptcy Fallout
Flipcause filed for Chapter 11 bankruptcy protection on Dec. 19, 2025. Court records show the company owed nearly $29 million to more than 3,200 nonprofit organizations nationwide. While bankruptcy proceedings generally halt lawsuits against the company itself, creditors may continue pursuing individuals who personally guaranteed corporate debts.
Bankruptcy filings also revealed that Flipcause executives, including Ravyn, received more than $3.8 million in payments before the company sought bankruptcy protection.
First Personal Lawsuit Against Flipcause Founder
Flipcause, a Delaware corporation formerly headquartered in Oakland, is not named as a defendant in the New York lawsuit.
The case appears to be the first lawsuit targeting Ravyn personally since the bankruptcy filing. Court records indicate that he also guaranteed at least two additional loans issued in August 2023, including a $100,000 loan from Firmage Investments and a $50,000 loan from Willden Properties.
According to court filings, process servers attempted to deliver the lawsuit papers to Ravyn’s Brooklyn residence on March 18. After Ravyn allegedly declined to allow them upstairs, the documents were left with the building’s doorman.
Ravyn has 30 days to respond to the complaint. Failure to do so could result in a default judgment in favor of Grand Avenue.
Neither Ravyn, Grand Avenue Advisors, nor the firm’s attorney responded to requests for comment.