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Startup failures ❌🙅

According to the research, 75% startups that receive venture funding are bound to shut down. 50% companies stop working after 5 years and 70% after 10. There is a number of reasons for it: project bankruptcy, low quality product, or poor marketing. Let us review 5 startups that failed.

Jawbone
The startup was founded in 1999. It meant to sell bluetooth headset, fitness trackers, and speakers. Firstly, the company actively grew and even made contract with American army to develop a military version of headphones. Later, the company presented a new model of fitness bracelets. Thanks to this, the startup was the market leader for several years. However, as Apple Watch and cheap Xiami bracelets appeared, Jawbone lost the competition even with funding of $930 million.

Abound Solar
The company was the leading light among the solar batteries producers at some point. During its operation, the startup was supported by Colorado State University and National Scientific Fund. Though Abound Solar had $614 million investments, they got into debt amounted to $100 million. The startup didn’t manage the competition with Chinese producers of cheaper products.

Sprig
Initially, it was a successful startup. The company attracted $57 million and was valued at $110 million. Sprig delivered natural food within 15 minutes. Nevertheless, the project yielded to its competitors due to a weak business model.

Theranos
Though the company was notorious for its huge financial scam, it attracted $500 million of investments. At the pick of its capitalization the startup reached $9 billion. The concept was to develop an apparatus which could analyze the blood and detect illnesses through a finger pricking. However, nothing worked out. The Commission of Securities and Stock Exchange accused the ex-president of defrauding investors. The innovation was not created and Theranos went bankrupt.

Arrivo
In 2017, Brogan BamBrogan established the startup for developing the system of Hyperloop — highspeed transport. Brogan was intended to replace a standard model with a technology of magnetic levitation. Unluckily, the started ceased working as they didn’t succeed to attract investors.

It seems that the main failure causes is the inability to resist the competition. However, the range of causes that prevent you from success is much wider. We will post the article about them later.

Meanwhile, what text how the companies could have improved the situations? Share in the chat 💬


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