Failed Australian startups

7 Failed Australian Startups & the Reasons Behind

Here's a list of 7 failed startups in Australia, analyses on their shut downs, and interviews with their founders.

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Here’s a list of 7 failed Australian startups.

Some of them were big, with huge teams and funding rounds of $100M.

Others were smaller, ran by the co-founders and with no funding.

But all of them shut down. And each for a specific cause of failure.

7 Failed Australian Startups

1) 99dresses

99dresses

99dresses was a fashion application which offered basic inter-trade of second-hand designer dresses between users. 99dresses was established by the 18-year-old Nikki who had no clue about the tech business. It successfully operated for one year but had to shut it down in 2014.

Details of the startup:

  • Founders: Nikki Durkin
  • Category: e-Commerce
  • Started in: 2010
  • Closed in: 2014
  • Nº of employees: 1-10
  • Funding Amount: $105.7K
  • Specific cause of failure: Multiple reasons

You can read more about 99dresses‘ failure here.

2) The Nerd Cave

The Nerd Cave

The Nerd Cave was a new kind of retail model, a truly safe space for gamers of all kinds to go and enjoy their passion and hobby. They were doing it great, earning $16,000 AUD/month. But when they moved to a new location, they saw a big loss of income, which provoked the closure of their doors.

Details of the startup:

  • Founders: David Desi
  • Category: Entertainment
  • Started in: 2013
  • Closed in: 2017
  • Nº of employees: 1-10
  • Funding Amount: None
  • Specific cause of failure: Lack of capital

You can read more about The Nerd Cave‘s failure here.

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3) Zor Technology

When he was 16 years old, Mat started a business which imported consumer electronics and re-sold them at almost x10 the original price. Through affiliates, he put his business on the track to 6 figures. However, one day he received a call from a law firm which forced him to shut down the startup.

Details of the startup:

  • Founders: Mathew Carpenter
  • Category: Software & Hardware
  • Started in: 2008
  • Closed in: 2009
  • Nº of employees: 1-10
  • Funding Amount: None
  • Specific cause of failure: Legal problems

You can read more about Zor Technology‘s failure here.

4) Onepagetrip

Onepagetrip

Onepagetrip was a travel itinerary sharing community. Not having a plan to make money from the beginning was a stupid rookie mistake.

Details of the startup:

  • Founders: Ana Santos
  • Category: e-Commerce
  • Started in: 2016
  • Closed in: 2017
  • Nº of employees: 1-10
  • Funding Amount: None
  • Specific cause of failure: No idea validation

You can read more about Onepagetrip‘s failure here.

5) Shoes of Prey

Shoes of Prey

Shoes of Prey was an shoes e-Commerce for women that allowed customers to customize the items. After 10 years of running, the company announce its bankruptcy. According to founders, the startup failed due to the high fixed costs associated with offering customizable products and their inability to crack mass-market adoption.

Details of the startup:

  • Founders: Jodie Fox, Michael Fox, Mike Knapp
  • Category: e-Commerce
  • Started in: 2009
  • Closed in: 2019
  • Nº of employees: 11-50
  • Funding Amount: $25.9M
  • Specific cause of failure: Bad business model

You can read more about Shoes of Prey‘s failure here.

6) Guvera

Guvera

Guvera offered a system that enabled free music downloads through engagement advertising. The amount they raised: +$130M. The revenue they generated: Around $0.

Details of the startup:

  • Founders: Claes Loberg
  • Category: Music
  • Started in: 2008
  • Closed in: 2017
  • Nº of employees: 100-250
  • Funding Amount: $130.4M
  • Specific cause of failure: Bad business model

You can read more about Guvera‘s failure here.

7) Roamz

Roamz

Roamz was a location-based app that allowed users find and review nearby restaurants, pubs, events and places. The app was download +200k times before it was shut down, but the team never figured out how to monetize it.

Details of the startup:

  • Founders: Jonathan Barouch
  • Category: Social media
  • Started in: 2011
  • Closed in: 2013
  • Nº of employees: 10-50
  • Funding Amount: $3.5M
  • Specific cause of failure: Bad business model 

You can read more about Roamz‘s failure here.

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I hope you’ve enjoyed our list of 7 failed startups in Australia.

If I’ve missed any, let me know by sending me an email at hello@failory.com.

You can keep learning about failed startups in our Startup Cemetery and through our interviews with failed startup founders.

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