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You'll Totally Believe Why These Startups Failed

Posted by samzenpus on from the not-the-best-idea dept.

Nerval's Lobster writes: If you ever wanted a glimpse into what dooms startups, look no further than autopsy.io, a website that lists the reasons why many newborn tech firms imploded. The website offers entrepreneurs the ability to self-explain why their startup didn't quite make it; in a bid to separate real-life stories from entertaining fictions, the application form asks for a link to a blog post or medium article "that tells the story of the failure," along with the founder(s) Twitter handle and Crunchbase or Angel.co profile. Some of the reasons listed for failure are maddeningly opaque, such as UniSport's "for a number of reasons" or PlayCafe's "we didn't reach enough users." Others are bleakly hilarious; as the founders of Zillionears, self-billed as a "creative pre-sale platform for musicians," confessed: "People really didn't really LIKE anything about our product." If you're thinking of launching your own company, or you work for a wet-behind-the-ears startup, it's worth scanning the list to see if any of these potential crises are brewing in your setup.

6 of 151 comments (clear)

  1. The 90's all over again... by bev_tech_rob · · Score: 5, Insightful

    Looking at all those sites reminds me of the 90's all over again. Silly sounding site names with silly business models IMO .....

    --
    You're messin' with my Zen Thing, man.....
    1. Re:The 90's all over again... by jellomizer · · Score: 5, Interesting

      This type of stuff happens all the time. A lot of people failed to realize that running a business is harder than it seems when you don't.
      "If you build it, they will come" is a false statement. "If you build it, and people want it, if they don't you need to market it so they want it, if they do they need to know about it, if they know about it they need to like it better then any alternatives... To do this you need funding"

      --
      If something is so important that you feel the need to post it on the internet... It probably isn't that important.
  2. What happens when autopsy.io goes belly up by Spy+Handler · · Score: 5, Funny

    where will the founder explain how it died?

  3. Entrepreneurs are not business people by QuietLagoon · · Score: 5, Interesting
    Many times, the reason boils down to the fact that the entrepreneur's mind works very differently than the mind of a business person.

    .
    Many entrepreneurs wait too long before calling in a business person to watch over the financial aspects and business goals of the company.

  4. Damn the torpedos full speed ahead by skids · · Score: 5, Funny

    If you're thinking of launching your own company... it's worth scanning the list to see if any of these potential crises are brewing in your setup.

    I thought the whole point was to jump in head-first and just hope the thing gets bought by an aquisitions team from an established company or pull all the copper out of the walls on your way out and end up breaking even (and therefore having employed yourself for a year or three.)

    --
    Someone had to do it.
  5. Hmm, oversaturation maybe? by ErichTheRed · · Score: 5, Insightful

    Just looking at some of the reasons for failure, I see a potential problem:
    "WhatsApp for customer service"
    "Tinder for jobs"
    "Flash sales for toddlers"

    I understand it's the '10s now, and companies can start up with an AWS account and big enough credit card limit, but it seems to me like the primary reasons for failure are (1) just a stupid idea that has no way to make money or gain customers, and (2) oversaturation and copying of "successful" companies' business plans or apps. That's one thing that hasn't changed since the 90s -- the only difference is that the companies get to hang around longer because they aren't blowing 6 figures on Sun servers and colo charges.

    The offline analogue would be the frozen yogurt shop or cupcake bakery that have popped up in recent years. Nothing wrong with either, but I have seen so many of them come and go, and I feel bad because I know why. I'm sure most of those business owners read some article or listened to their friends describing the ultra-high margins to be made in the yogurt business, or living their dream of being a cupcake baker. They probably had visions of hordes of people descending on their perfectly-located shop and emptying their wallets on the counter. So, they quit their job, cash in their 401(k) and invest 6 figures to open up. Six months later, they're gone. The reason I feel bad is this -- sure, people make their own decisions and stuff, but after they've lost everything in a disastrous business venture, most peoples' lives are going to be significantly harder than if they hadn't wasted all that money. It's even worse if the owner is just a franchisee -- then the franchisee is getting rich off of the deal too.