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.

This is Brought to You by:
Acadium

Acadium

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

NerdPilots

NerdPilots

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

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)!

Your subscription could not be saved. Please try again.
Your subscription has been successful.

Auctionata

Online auction platform for art & luxury

General Information
Category
e-Commerce
Country
Germany
Started
In 2012
Business Failure
Business Outcome
Shut Down
Closed
By 2017
Cause of Failure
Legal Challenges
Founders & Employees
Number of Founders
Four
Name of Founders
Alexander Gilkes, Alexander Zacke, Georg Untersalmberger, Susanne Zacke
Number of Employees
Between 251 And 500
Funding
Number of Funding Rounds
6
Total Funding Amount
$95.5M
Number of Investors
15
Description

Auctionata was an online sales management firm and eCommerce organization that gave online closeout administrations of artistic items, extravagance collectibles, and others. Preceding each sale, Auctionata gave data to all things to be unloaded on its site. The auctions themselves were held in a TV-studio and streamed on the web. The closeouts were driven by an authorized salesperson and offers were acknowledged by telephone, on the web, by a truant offer, as well as from the studio floor. Auctionata utilized a framework created by its originators, enabling it to transmit the live video stream that provided a real-time working framework without delays. Auctionata was to directly to rival multinational closeout houses, including Christie's and Sotheby's. Since potential bidders never again needed to physically go to the sales, Auctionata's online sell-offs was a revolutionary innovation in the field.

Cause of Failure

Auctionata's issues originate from its reported unethical behavior, lack of transparency and outright lies by former Auctionata CEO and his close partners.

After months of being in business, reports of management, operational and revenue challenges at the firm arose after an independent auditing company discovered that the auction house was making very few direct deals, members of the company bided on or even bought items on the live sales and the company heavily overstated the amount of profit and sales it made to the public. The organization claimed that the auditing report didn't bring into account private deals and other income streams. The truth of the matter was that none of Auctionata's purported record-breaking online deal accomplishments were ever upheld by real deals. It was additionally noticed that blunders of oversights were a routine at Auctionata which had an embarrassing Yelp! review of 1 star, with customers complaining of everything from delivery times, the alarming disappearance of the items they put on sale on the website (often to be found on eBay) to the complete unresponsiveness of the company representatives. Auctionata, from its part, had the propensity of cleansing all negative data from its records.

The absence of morals, administration mismanagement and the naivety of financial specialists were alarming factors, and so was the willingness of investors to keep funding the startup despite its increasingly dubious reputation and dealings. Auctionata ultimately failed to find new speculators thus filing for bankruptcy and closing down.

Go on Reading

HotelsAroundYou

Booking of same-day hotel rooms

Travel
Shut Down
$125.4K
Competition
Travel
India
In 2013
By 2017
Three
Between 1 And 10
Less Than 1M
Competition
Shut Down
Reach.ly

Analytics tool for e-Commerce sites

Analytics
Shut Down
€200K
Multiple Reasons
Analytics
Latvia
In 2011
By 2015
One
Between 1 And 10
Less Than 1M
Multiple Reasons
Shut Down
RethinkDB

Scalable database for the real-time web

Software and Hardware
Acquired
$12.2M
Bad Market Fit
Software and Hardware
United States
In 2009
By 2016
Two
Between 11 And 50
Between 10M 50M
Bad Market Fit
Acquired
Anki

Building emotionally intelligent robots

Software and Hardware
Shut Down
$182M
Lack of Funds
Software and Hardware
United States
In 2010
By 2019
Three
Between 101 And 250
More Than 50M
Lack of Funds
Shut Down
37Coins

Startup that developed Bitcoin technologies

Finances
Shut Down
$525K
Lack of Funds
Finances
United States
In 2014
By 2015
Three
Between 1 And 10
Less Than 1M
Lack of Funds
Shut Down
Argyle Social

Provided social media management tools

Marketing
Shut Down
$1.6M
Competition
Marketing
United States
In 2010
By 2014
One
Between 11 And 50
Between 1M 10M
Competition
Shut Down
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)!

Your subscription could not be saved. Please try again.
Your subscription has been successful.