Startup Cemetery

A big resource for entrepreneurs and startup owners, in which we have collected and analyzed why +100 big companies have failed. Learn from mistakes, and avoid being part of the 90% of businesses that fail.

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99dresses

Virtual closet to trade fashion items

General Information
Category
e-Commerce
Country
Australia
Started
In 2010
Business Failure
Business Outcome
Shut Down
Closed
By 2014
Cause of Failure
Multiple Reasons
Founders & Employees
Number of Founders
One
Name of Founders
Nikki Durkin
Number of Employees
Between 1 And 10
Funding
Number of Funding Rounds
2
Total Funding Amount
$105.7K
Number of Investors
4
Description

99dresses was a fashion application marketed as a virtual model closet which offered basic inter-trade of second-hand designer dresses between users. The brain-child of this application noticed the high turnover in ladies' closets, whereby they purchase a designer fashion dress, wear it a couple of times, get bored and end up leaving the dress hanging in the closet unused for the months and years to come. The founder of the startup figured that it could be profitable and extremely fascinating to connect two or more ladies with the similar issues, tastes, and needs and have them trade clothes; and so, 99 dresses was born.

Cause of Failure

99dresses was established by the 18-year-old Nikki who had no clue about the tech business. It successfully operated for one year after which it started encountering great money and technical related difficulties which prompted the shutting down of the app in 2014.

The key issue was that the organization did not raise enough income to maintain its tasks as the organization's plan of action depended on the exchange cost. Steadily, their exchanges diminished in cost and 99dresses' income endured a shot. Their plan to scale up to include handbags and different adornments, failed to gain traction and the number of exchanges in the platform dropped.

Difficulties in implementing innovation and absence of management experience likewise added to conveying deals to a stop and caused a drying up in funding sources. The startup also experienced Visa issues that obstructed smooth activities between the United States and Australia. With these series of events, the company’s group of prime supporters gradually gave up on the platform and the startup had to close down.

Go on Reading

99dresses

Virtual closet to trade fashion items

e-Commerce
Shut Down
$105.7K
Multiple Reasons
e-Commerce
Australia
In 2010
By 2014
One
Between 1 And 10
Less Than 1M
Multiple Reasons
Shut Down
Brisk

Built tools for sales organizations

Marketing
Shut Down
$137K
Lack of Focus
Marketing
Sweden
In 2012
By 2016
Four
Between 11 And 50
Less Than 1M
Lack of Focus
Shut Down
Kno

Education software startup

Education
Acquired
$94.9M
Competition
Education
United States
In 2009
By 2013
Two
More Than 10000
More Than 50M
Competition
Acquired
LayerVault

Allowed users to store and collaborate on design work

Design
Shut Down
$535K
Lack of Funds
Design
United States
In 2011
By 2014
Two
Between 11 And 50
Less Than 1M
Lack of Funds
Shut Down
Vreal

VR game-streaming platform

Entertainment
Shut Down
$15M
Bad Timing
Entertainment
United States
In 2015
Active
One
Between 11 And 50
Between 10M 50M
Bad Timing
Shut Down
Shipbeat

Shipping API for e-commerce companies

e-Commerce
Bankruptcy
€1.2M
Multiple Reasons
e-Commerce
Denmark
In 2014
By 2016
Two
Between 11 And 50
Between 1M 10M
Multiple Reasons
Bankruptcy
This is Brought to You by:
NerdPilots

NerdPilots

Get fast, reliable web, mobile and software development help 24/7.

Acadium

Acadium

120 hours of digital marketing from a remote apprentice for only $299 (+ $50 off!).

This could be your AD. Sponsor Startup Cemetery to reach +10,000 entrepreneurs.

Subscribe to Our Newsletter!

Invite us into your inbox and get immense learning and 80+ deals on tools to help you scale your startup (worth up to $50,000)!

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