As a startup entrepreneur, you think that you know it all. In fact, every entrepreneur thinks of his/her idea is a step towards success. But after knowing that 90% of startups fail each year will haunt you from inside out. Even if you have enough funding, you won’t be able to make it to the end. If you still don’t believe, have a look at top 10 most funded startups to fail in 2017.
2. 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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3. 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.
www.iqvis.com info@iqvis.com
5. 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.
www.iqvis.com info@iqvis.com
6. 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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7. 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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8. 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.
www.iqvis.com info@iqvis.com
9. “
“Don’t worry about failure; you only have to
be right once.”
Drew Houston, Dropbox Founder & CEO
10. 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.
www.iqvis.com info@iqvis.com
11. 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.
www.iqvis.com info@iqvis.com
12. 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.
www.iqvis.com info@iqvis.com
13. 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 couldn’t
bring in new features on-time.
www.iqvis.com info@iqvis.com
14. “
“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
15. 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 didn’t value it to be a $500 product
and were not attracted.
www.iqvis.com info@iqvis.com
16. 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.
www.iqvis.com info@iqvis.com
17. “
“Nothing works better than just improving
your product.”
Joel Spolsky, Stack Overflow & Trello Co-founder
18. 100+
Startup Apps
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