Going Out of Business by Design: Why Seventy Percent of Small Businesses Fail


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Philadelphia-based B2B food delivery startup Zoomer floundered in comparison to UberEats and GrubHub, while video platform Videma had difficulty luring consumers away from established platforms like YouTube and Facebook. Read on for post-mortems of 11 startups that have shuttered since our last update in October Product: Coinprism web wallet.

Regulators are starting to pay attention to the [cryptocurrency] space, and activities around blockchain assets tokens exchanges, ICO tools and services, etc. Consumer growth slowed. People close to me and the business began to warn that chasing consumers was the wrong strategy. After all, how often do consumers ship things? At the time, I approached everything I did as an engineer.

Rather than change direction, I tasked the team with expanding geographically and dreaming up innovative features and growth tactics to further penetrate the consumer market… But, growth at all costs is a dangerous trap that many startups fall into, mine included. This was a mistake — my mistake. While large, established companies have the financial freedom to explore new product categories for the sake of exploring, for startups it can be irresponsible.

Title: An experienced startup founder learns some new lessons. Perhaps we were solving for a pain e. Yes, probably all of that.

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People started using it and then would bail after four weeks or eight weeks. Chorus tried all sorts of things to overcome AVE: having trainers on the platform that could answer questions, allowing people to do one-day challenges, encouraging chatting, and encouraging posting a weekly plan. But people wallowing in the depths of AVE would turn off the notifications. In other words, thanks to AVE, Chorus was contributing to the very thing it was trying to solve, and making people hide from their workout buddies.

Title: High-tech cooking startup Sansaire shutting down, ceasing production of new sous vide device. We regret to share that Sansaire will be ceasing development of the Delta [cooking device] and the company will ultimately be closing its doors. In short, our relationship with the new production facility broke down and has exhausted available funding and manufacturing routes. Title: Pet care startup Baroo shuts down as competitors raise hundreds of millions. Wag, for instance, was founded the same year as Baroo, but it has expanded to more than cities after raising exorbitant amounts of venture capital.

Title: Confirmed: Zoomer is shutting down. Product: Zoomer B2B food delivery service. Product: Otto digital locks. Smart lock startup Otto CEO Sam Jadallah wrote a Medium post about the closure of his company, after an acquisition deal failed to go through. On December 11th, [the buyer] called me and stated they would not complete the acquisition nor revisit the investment proposal. I was stunned. The reason is still not understood. We had extended our cash to get to the closing date, and now were left without alternatives. This year, , was a particularly harsh year for hardware startups.

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Additionally each day carried the potential of a new existential threat, from product to supplier to market to financing to people to regulatory to competitive. Title: Goodbye for now.

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Product: Vidme video platform. Convincing people to use and keep using a new platform is hard, leaving many creators locked in. Without a massive captive audience already on the platform, new channels struggled to find immediate growth. Lacking a critical audience size, we struggled to attract direct advertisers to help offset our infrastructure costs, leaving few resources to spend on product innovation and attracting new audience. So what happened? To put it simply, over the past months, we took hundreds of meetings in an attempt to secure the necessary capital to continue running our business and build our next product — which would have been a true alternative to traditional hearing aids.

The market has shifted remarkably for hardware. In order to fulfill our mission, we announced last month that we would shift our resources to focus on lowering the price of the Press and Produce Packs. We began identifying ways that we could source, manufacture and distribute at a lower cost to consumers. During this process, it became clear that creating an effective manufacturing and distribution system for a nationwide customer base requires infrastructure that we cannot achieve on our own as a standalone business.

We are confident that to truly have the long-term impact we want to make, we need to focus on finding an acquirer with an existing national fresh food supply chain who can carry forward the Juicero mission. Product: Blin. Three notable excerpts:. First Attempts : Blin. The Pivot : We came up with a fresh take on the plethora of AR-style apps that create visual effects based on face detection and tracking… [Poor user experience] had a big impact on our retention metrics. The clock kept ticking.

But how does this become a platform? Title: Dear Teforia Customers and Partners.

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Product: Teforia Tea Infusor. The glass within the infusion globe and carafe are hand blown by a glass artisan, one at a time. We went to these extraordinary lengths because we believe premium loose leaf tea should be delivered in the most delicate and sustainable way possible…. Product: Jawbone. Jawbone co-founder and CEO Hosain Rahman has founded a new company called Jawbone Health Hub that will make health-related hardware and software services, according to the person.

Many employees of Jawbone moved to the new firm earlier this year, the person said. A notice sent to creditors said Jawbone entered into insolvency proceedings under California law on June Jawbone hired Sherwood Partners to handle the matter. The notice says creditors have days to file a claim. Title: Goodbye, Hello. The past few weeks we have been working hard to find the right home for Sense and we are still focused on that.

When we first launched Sense, sleep was one of the most neglected part of our lives. Three years later, for many, it is now rightly recognised as perhaps the most important pillar of our health and wellness, alongside exercise and diet. I am incredibly happy that we were able to play a small part in changing the conversation around sleep. The past few months have been incredibly tough, especially on the team of Hello. Title: Auto startup Pearl shuts down.

Title: How Wikimart. After almost a two-year break, I have spent two days at the company. Majority shareholders abandoned it. The company does not have assets to save and competencies to preserve.


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They have spent in rubles twice! Title: When the money runs out. Around 4 p. Title: Package delivery startup Doorman is shutting down. Product: Doorman. The startup sent a letter over the weekend letting customers know it would no longer be in business in two weeks…. Doorman admitted nearly one year ago the model was so popular it was losing money and had to change tack.


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  • Doorman says it will no longer accept incoming shipments after September 29th and that those who use their Doorman address for online shipments should update their information. Title: Raptr is shutting down this month. Product: Raptr. Many companies offer game optimization tools. Having an independent platform to do this is no longer necessary. The first half of has seen plenty of startup deaths — some expected, some less so.

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    Most surprising was the sudden shutdown of Sprig, a startup in the beleaguered food-delivery space that first received funding in Meanwhile, two former industry leaders also closed their doors: Adtech platform AudienceScience shut down after losing a major client, and social bookmarking pioneer del. May its bookmarks rest in peace.

    Read on for the reasons 22 startups shut off the lights since early February. Product: Sprig. Product: Beepi. Riding on the hype of transportation startups and marketplaces, Beepi may have raised too much, too soon. One investor in the startup said that the founders were too aggressive in pushing for higher valuations. Product: Auctionata Paddle8 AG. Auctionata has been in decline since news of serious trade violations perpetrated by co-founder and former CEO Alexander Zacke came to light in March , when Zacke and Auctionata board members were accused of illegally bidding on their own auctions.

    Months later, reports of business difficulties at Auctionata emerged after independent evaluations of auction results suggested that the house was making only very few direct sales. Title: Naspers e-commerce firm Markafoni to shut down. Product: Markafoni.

    Markafoni was an online shopping destination for Turkish consumers, specialising in clothing and fashion accessories.

    Going Out of Business by Design: Why Seventy Percent of Small Businesses Fail Going Out of Business by Design: Why Seventy Percent of Small Businesses Fail
    Going Out of Business by Design: Why Seventy Percent of Small Businesses Fail Going Out of Business by Design: Why Seventy Percent of Small Businesses Fail
    Going Out of Business by Design: Why Seventy Percent of Small Businesses Fail Going Out of Business by Design: Why Seventy Percent of Small Businesses Fail
    Going Out of Business by Design: Why Seventy Percent of Small Businesses Fail Going Out of Business by Design: Why Seventy Percent of Small Businesses Fail
    Going Out of Business by Design: Why Seventy Percent of Small Businesses Fail Going Out of Business by Design: Why Seventy Percent of Small Businesses Fail
    Going Out of Business by Design: Why Seventy Percent of Small Businesses Fail Going Out of Business by Design: Why Seventy Percent of Small Businesses Fail
    Going Out of Business by Design: Why Seventy Percent of Small Businesses Fail Going Out of Business by Design: Why Seventy Percent of Small Businesses Fail

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