34% of startups fail due to lack of product-market fit. Learn how to avoid it for only $15!

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:
Headway

We help startups launch new digital products through product strategy, design, and development.

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

Picasa

Photo management and editing software

Software and Hardware
Shut Down
-
Multiple Reasons
Software and Hardware
United States
In 2002
By 2016
One
More Than 10000
Nothing
Multiple Reasons
Shut Down
Trusted Contacts

Google's emergency location app

Health
Shut Down
-
Multiple Reasons
Health
United States
In 2016
By 2020
One
Between 1 And 10
Nothing
Multiple Reasons
Shut Down
Mailbox

Inbox that made email light, fast, and mobile-friendly.

Productivity
Shut Down
$5M
Bad Business Model
Productivity
United States
In 2011
By 2015
Two
Between 501 And 1000
Between 1M 10M
Bad Business Model
Shut Down
ArsDigita

Agency that built solutions for e-commerce

e-Commerce
Shut Down
$35M
Lack of Experience
e-Commerce
United States
In 1997
By 2002
Seven
Between 51 And 100
Between 10M 50M
Lack of Experience
Shut Down
RewardMe

Intelligent CRM solution for local commerce

Marketing
Shut Down
$1.1M
Lack of Funds
Marketing
United States
In 2010
By 2015
Three
Between 11 And 50
Between 1M 10M
Lack of Funds
Shut Down
Munchery

Gourmet meals at your doorstep

Food and Beverage
Bankruptcy
$125.4M
Multiple Reasons
Food and Beverage
United States
In 2011
By 2019
Three
Between 101 And 250
More Than 50M
Multiple Reasons
Bankruptcy
This is Brought to You by:
Headway
Headway

We help startups launch new digital products through product strategy, design, and development.

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.