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.

Argyle Social

Provided social media management tools

General Information
Category
Marketing
Country
United States
Started
In 2010
Business Failure
Business Outcome
Shut Down
Closed
By 2014
Cause of Failure
Competition
Founders & Employees
Number of Founders
One
Name of Founders
Adam Covati
Number of Employees
Between 11 And 50
Funding
Number of Funding Rounds
2
Total Funding Amount
$1.6M
Number of Investors
2
Description

The Argyle Social was a Social media marketing tool. The company provided an easy to use, highly interactive platform for marketers to specifically improve their customers’ social media platform engagement and lead generation. Argyle was considered as having one of the best price-points in the market at some point. Widely praised for their intuitive dashboard and highly effective scheduling capabilities, Argyle had been for a period one of the most sought-after programs for many internet marketers.

Cause of Failure

Adam Covati, the former CEO and founder of Argyle Social, tried to stand out from their competitors by allowing their software to be integrated into various social media marketing automation software including Pardot and Marketo. This additional design Argyle Social has is really useful for marketers, but still, the bulk and massive marketing efforts of their competitors, unfortunately, drowned out that value.

The funds were never enough to keep the software in the market, not to mention that the company still had to pay its employees.

Leading social media platforms such as Facebook and Twitter change their APIs every time, for the Argyle Social to work, Covati and his team needed to keep up with those changes as well, and that was a huge struggle for them. They had talent and skill but lacked the appropriate number of employees needed to accomplish such task. The company’s lack of employees came about from their first issue, which is not having enough funds. Without the appropriate funds, it was impossible for Argyle to keep their services in the market. Adam Covati said that he tried numerous times to find a willing business partner to keep the company alive, but no company or individual ever found Argyle to be “profit wise”.

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