Top 10 startup failures of 2017

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TOP 10 Startup Failuresof 2017
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Startups Failure

• Some Statistics
• 9 out of 10 startups fail every year.
• 75 of venture-backed startups fail.
• 82 fail because of cash flow problems
• 40 of SMBs are profitable
• 30 reach breakeven point
• 30 are continually losing money
• Information companies fail mostly with success
  rate of 37 after 4 years.

• Why Startups Fail?
• Lack of market research
• Lack of focus
• Absence of motivation
• Not thinking out of the box
• Wrong team people
• Fail to lead the team
• Lack of industry knowledge
• Asking for funds too soon

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Hello!

• In the following slides,
• We are going to share some recent examples, where
  startups failed despite raising millions of
  dollars in terms of funding.

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Scroll Down!

• Lets start with the list!

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Beepi

• A marketplace for people to buy and sell used
  cars
• Raised 148.95 million in 5 rounds from 35
  investors
• The startup failed apparently due to the poor
  customer service and wrong priorities.

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Auctionata

• Online Auction house for arts, antiques and
  collectibles
• Raised 95.65 million in 6 rounds from 15
  investors
• The startup failed, apparently due to lack of
  ability to find potential buyers. Their
  live-stream events failed to meet their estimates
  and resulted in

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HomeHero

• Non-Medical Homecare Provider to into the
  patients homes/offices
• Raised 23.02 million in 3 rounds from 7
  investors
• The startup failed due to underestimating
  regulatory changes and ability of homecare
  agencies to adopt new technology. They also
  overestimated the ability to pay off for
  non-medical home care.

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Quixey

• Mobile App Search Engine
• Raised 164.9 million in 4 rounds
• The startup failed, apparently due to the bigger
  competitors like Google Apple that are
  developing digital assistants and search tools.

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• Dont worry about failure you only have to be
  right once.
• Drew Houston, Dropbox Founder CEO

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Yik Yak

• Anonymous Social Networking App
• Raised 73.5 Million in 3 rounds from 9 investors
  
• The startup failed, apparently due to
  cyberbullying and unsavory content. In fact, some
  schools also banned it leading to damaged repute
  less subscription.

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Spring

• Cook and deliver own line of health conscious
  lunches and dinners
• Raised 56.7 million in 4 rounds from 26
  investors
• The startup failed, apparently due to the
  differences in consumer retention and poor HR
  practices.

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Jawbone

• Consumer technology and wearable product
• Raised 590.8 million in 14 rounds from 19
  investors
• The startup failed, apparently due to sluggish
  industry growth and tough competition in the
  wearable market.

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Hello

• Bedside sleep tracker sense
• Raised 40.51 million in 4 rounds from 7
  investors
• The startup failed, due to a poor product
  experience and lack of innovation. It couldnt
  bring in new features on-time.

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• The most dangerous poison is the feeling of
  achievement. The antidote is to every evening
  think what can be done better tomorrow.
• Ingvar Kamprad, Founder of IKEA

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Pearl

• Backup camera embedded in a license plate cover
• Raised 50 million in 1 round from 4 investors
• The startup failed, due to overpricing. Most of
  the people didnt value it to be a 500 product
  and were not attracted.

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Juicero

• Juice machine maker
• Raised 118.5 million in 4 rounds from 17
  investors
• The startup failed, due to two factors. The
  upfront cost of the machine was too high.
  Moreover, consumers had to bear additional cost
  for refillable packets.

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• Nothing works better than just improving your
  product.
• Joel Spolsky, Stack Overflow Trello Co-founder

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