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I am thrilled to announce the launch of my latest project, which I believe is a perfect fit for this forum's discussion of lessons learned from successful and failed startups.
It took me six months of extensive research, data collection, writing, designing, and development to create Startup Cemetery, a comprehensive resource that analyzes the reasons behind the failure of over 100 startups.
The past three months have been particularly challenging as I battled launch anxiety and repeatedly postponed the launch day. I always felt that there were missing features and additional information that needed to be added to each business page.
To overcome my reluctance to launch the project, I decided to reach out to Kevin William David, a prominent member of the Product Hunt community, and schedule a launch day with him. I am pleased to report that Startup Cemetery is now featured on Product Hunt!
The platform features over 35,000 words of content, exploring why companies such as Vine, Yik Yak, and Netscape failed. You can use filters to search for specific industries, countries, or causes of failure, or click the "Surprise Me!" button to be taken to a random startup!
If you are unsure where to begin, I highly recommend reading three specific startup case studies that caught my attention:
Beepi Beepi faced a cash flow problem and attempted to sell itself to two potential buyers, but both sales fell through, leading to the company's closure.
Beepi had an alarmingly high burn rate, spending around $7 million per month. The reasons behind the cash shortage were attributed to mismanagement of funds, including using company resources to cover personal bills for the founders' partners and excessive spending on luxurious office furniture. Additionally, the company was reported to offer disproportionately high salaries and overtime pay to its top management.
In addition to the financial mismanagement, Beepi's logistical operations in buying and selling cars were also lacking. Despite its original plan to complete an acquisition deal with Fair.com, one of its primary competitors, the deal never materialized. Beepi then tried to negotiate with DGDG, but this deal also fell through, ultimately leading to the company's shutdown in December 2016.
Juicero, on the other hand, failed to establish a profitable business despite raising a substantial amount of funds, touting its innovation and disruption. The company received funding from high-profile firms, but users eventually realized that the machines were useless, leading to its downfall.
The Juicero's downfall can be attributed to various factors, such as the high initial price of $699, which proved to be a barrier for many potential customers. Additionally, the fact that the machine only worked with Wi-Fi was an inconvenience. On top of that, the company placed a scannable QR code on each serving packet, rendering the machine useless unless the code was detected. This meant that customers were unable to use their own homemade packets and had to order them from Juicero at a cost ranging from $5 to $7 per packet. After months of sluggish sales, the company attempted to sell its product for $400 and planned to introduce a cheaper version in the following months.
Juicero was dealt a final blow when Bloomberg News released a video demonstrating that a full glass of juice could be extracted by hand-squeezing the packets, rendering the $700 machine useless. A few months after the video's release, Juicero declared bankruptcy and has since been deemed yet another frivolous Silicon Valley startup product that raised significant funds without solving any real problems.
Fab
Fab's success had a global impact, leading to the launch of several replicas of its platform, including those by the Samwer brothers, who are renowned for replicating thriving American businesses abroad, such as eBay and Amazon. This news troubled Fab's CEO, Jason Goldberg, who aimed to secure sales in the European region by acquiring three new startups in the area. However, the move to expand prematurely into Europe resulted in a capital loss of over $60-$100 million for Fab.
A former Fab employee noted that the decision to expand into Europe would have been a fantastic move if done after the company had established itself fully in the U.S. However, the premature expansion led to serious funding issues on the board.
To address their slow delivery rate, Fab purchased their warehouse in New Jersey, which initially proved successful as delivery time reduced from 16.5 days to just 5.5 days. This allowed the company to grow their product inventory significantly and boost sales rapidly. However, the company failed to recognize that by scaling up their inventory, they would lose their competitive edge of offering personalized and intimate designs.
Moreover, Fab focused excessively on initial marketing campaigns, which led customers to purchase their first product but did not establish any long-term purchasing patterns. The decision to expand their product inventory eventually backfired as customers realized that they could purchase the same products for a cheaper price and receive faster delivery from Amazon. As a result, customers abandoned Fab and opted for Amazon's better service.
By mid-2014, CEO Jason Goldberg came to the conclusion that it was best to sell off the remaining assets of Fab to another company. In the end, the company worth $1 billion was sold to PCH Innovations for just $15 million.
You can find 97 additional failure stories on Startup Cemetery - https://www.failory.com/cemetery . I am very passionate about this project and would love to hear your opinions about it in the comments.
It took me six months of extensive research, data collection, writing, designing, and development to create Startup Cemetery, a comprehensive resource that analyzes the reasons behind the failure of over 100 startups.
The past three months have been particularly challenging as I battled launch anxiety and repeatedly postponed the launch day. I always felt that there were missing features and additional information that needed to be added to each business page.
To overcome my reluctance to launch the project, I decided to reach out to Kevin William David, a prominent member of the Product Hunt community, and schedule a launch day with him. I am pleased to report that Startup Cemetery is now featured on Product Hunt!
The platform features over 35,000 words of content, exploring why companies such as Vine, Yik Yak, and Netscape failed. You can use filters to search for specific industries, countries, or causes of failure, or click the "Surprise Me!" button to be taken to a random startup!
If you are unsure where to begin, I highly recommend reading three specific startup case studies that caught my attention:
Beepi Beepi faced a cash flow problem and attempted to sell itself to two potential buyers, but both sales fell through, leading to the company's closure.
Beepi had an alarmingly high burn rate, spending around $7 million per month. The reasons behind the cash shortage were attributed to mismanagement of funds, including using company resources to cover personal bills for the founders' partners and excessive spending on luxurious office furniture. Additionally, the company was reported to offer disproportionately high salaries and overtime pay to its top management.
In addition to the financial mismanagement, Beepi's logistical operations in buying and selling cars were also lacking. Despite its original plan to complete an acquisition deal with Fair.com, one of its primary competitors, the deal never materialized. Beepi then tried to negotiate with DGDG, but this deal also fell through, ultimately leading to the company's shutdown in December 2016.
Juicero, on the other hand, failed to establish a profitable business despite raising a substantial amount of funds, touting its innovation and disruption. The company received funding from high-profile firms, but users eventually realized that the machines were useless, leading to its downfall.
The Juicero's downfall can be attributed to various factors, such as the high initial price of $699, which proved to be a barrier for many potential customers. Additionally, the fact that the machine only worked with Wi-Fi was an inconvenience. On top of that, the company placed a scannable QR code on each serving packet, rendering the machine useless unless the code was detected. This meant that customers were unable to use their own homemade packets and had to order them from Juicero at a cost ranging from $5 to $7 per packet. After months of sluggish sales, the company attempted to sell its product for $400 and planned to introduce a cheaper version in the following months.
Juicero was dealt a final blow when Bloomberg News released a video demonstrating that a full glass of juice could be extracted by hand-squeezing the packets, rendering the $700 machine useless. A few months after the video's release, Juicero declared bankruptcy and has since been deemed yet another frivolous Silicon Valley startup product that raised significant funds without solving any real problems.
Fab
Fab's success had a global impact, leading to the launch of several replicas of its platform, including those by the Samwer brothers, who are renowned for replicating thriving American businesses abroad, such as eBay and Amazon. This news troubled Fab's CEO, Jason Goldberg, who aimed to secure sales in the European region by acquiring three new startups in the area. However, the move to expand prematurely into Europe resulted in a capital loss of over $60-$100 million for Fab.
A former Fab employee noted that the decision to expand into Europe would have been a fantastic move if done after the company had established itself fully in the U.S. However, the premature expansion led to serious funding issues on the board.
To address their slow delivery rate, Fab purchased their warehouse in New Jersey, which initially proved successful as delivery time reduced from 16.5 days to just 5.5 days. This allowed the company to grow their product inventory significantly and boost sales rapidly. However, the company failed to recognize that by scaling up their inventory, they would lose their competitive edge of offering personalized and intimate designs.
Moreover, Fab focused excessively on initial marketing campaigns, which led customers to purchase their first product but did not establish any long-term purchasing patterns. The decision to expand their product inventory eventually backfired as customers realized that they could purchase the same products for a cheaper price and receive faster delivery from Amazon. As a result, customers abandoned Fab and opted for Amazon's better service.
By mid-2014, CEO Jason Goldberg came to the conclusion that it was best to sell off the remaining assets of Fab to another company. In the end, the company worth $1 billion was sold to PCH Innovations for just $15 million.
You can find 97 additional failure stories on Startup Cemetery - https://www.failory.com/cemetery . I am very passionate about this project and would love to hear your opinions about it in the comments.
