GorillaPark, the European incubator, has dismissed suggestions that it is facing its fourth write-off investment, as Distractions, a mobile phone content provider, battles to secure follow-on funding.

A source at Distractions said it may have to call in the receivers if alternative investors do not commit. GorillaPark has invested in 17 companies three have failed, including Hot Orange which is currently in the process of liquidation.