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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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Alikolo

Online marketplace organization

General Information
Category
e-Commerce
Country
Indonesia
Started
In 2014
Business Failure
Business Outcome
Shut Down
Closed
By 2015
Cause of Failure
Lack of Experience
Founders & Employees
Number of Founders
One
Name of Founders
Danny Taniwan
Number of Employees
Between 1 And 10
Funding
Number of Funding Rounds
1
Total Funding Amount
$100K
Number of Investors
1
Description

Alikolo was an eMarketplace organization started in 2014, in Indonesia. The organization's goal was to address purchasers' issues from an online stage. Alikolo’s model was such that sellers could list their product in the e-marketplace and buyers could access the sites to make their purchases. Alikolo would then ensure that the items purchased from the online stage would be delivered to their remote destinations. Initially, they incentivized the delivery by offering free shipping but when the shipping promotion stopped, their sales dropped significantly.

Cause of Failure

As a matter of first importance, the author, Taniwan did not have a clear vision of the quality of the organization in connection to its rivals and that might be because its eMarketplace idea lacked uniqueness. This is highlighted by Taniwan inability to give a reason for which a customer should purchase at Alikolo specifically instead of purchasing from their rivals.

One of the significant slip-ups that Alikolo made was to offer the greater part of the organization’s stake to speculators. This put the founder as a minority investor and limited its involvement and influence in some aspects of the business. This kind of business structure, where the CEO becomes a minority investor frightened off other potential speculators and therefore, Alikolo failed to secure a second round of financing. This eventually prompted absence of adequate assets that could have been used to scale up the organization and assemble an aggressive and more successful platform. Ultimately, the major obstacles that Alikolo faced were internal since it had its leadership lacked experience in both designing and running an organization.

Go on Reading

Alikolo

Online marketplace organization

e-Commerce
Shut Down
$100K
Lack of Experience
e-Commerce
Indonesia
In 2014
By 2015
One
Between 1 And 10
Less Than 1M
Lack of Experience
Shut Down
Transpose

Smart workspace for businesses to manage projects

Productivity
Shut Down
$1.5M
Bad Business Model
Productivity
United States
In 2015
By 2015
Four
Between 11 And 50
Between 1M 10M
Bad Business Model
Shut Down
SpoonRocket

Next-gen, ultra-fast delivery platform

Food and Beverage
Shut Down
$13.5M
Competition
Food and Beverage
United States
In 2013
By 2016
Two
Between 11 And 50
Between 10M 50M
Competition
Shut Down
EventVue

Built online communities for conferences

Finances
Shut Down
$455K
Bad Market Fit
Finances
United States
In 2007
By 2010
Two
Between 1 And 10
Less Than 1M
Bad Market Fit
Shut Down
Fuhu

Designer and seller of cloud-served softwares

Software and Hardware
Acquired
$66.2M
Mismanagement of Funds
Software and Hardware
United States
In 2006
By 2015
Three
Between 501 And 1000
More Than 50M
Mismanagement of Funds
Acquired
Tutorspree

Web-based tuition services

Education
Acquired
$1.8M
Bad Marketing
Education
United States
In 2010
By 2013
Three
Between 51 And 100
Between 1M 10M
Bad Marketing
Acquired
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This could be your AD. Sponsor Startup Cemetery to reach +10,000 entrepreneurs.

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