Svetlin Nakov developed a technical startup project to scan ID cards and extract data using OCR, but it failed for several reasons. The project aimed to scan an ID card, extract fields like name and ID number using image processing and Tesseract OCR, and auto-fill forms. However, Tesseract had poor accuracy and image processing proved complex. Additionally, the project struggled to find customers, lacked a business model, and had no marketing or sales strategy. As a result, the startup ultimately failed.