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.

Beepi

P2P used car online marketplace

General Information
Category
Transportation
Country
United States
Started
In 2013
Business Failure
Business Outcome
Acquired
Closed
By 2016
Cause of Failure
Mismanagement of Funds
Founders & Employees
Number of Founders
Two
Name of Founders
Ale Resnik, Owen Savir
Number of Employees
Between 101 And 250
Funding
Number of Funding Rounds
6
Total Funding Amount
$149M
Number of Investors
31
Description

Beepi was an online peer-to-peer marketplace for used cars. Beepi promised to make the transaction easy, safe and profitable for all parties. The company would take care of inspecting, processing and eventually delivering the cars to the customers themselves. Vroom, a similar business to Beepi, requires only photos before cars are listed, while Beepi sent an inspector for on the spot inspection. Great customer service was one of Beepi’s strengths.

Cause of Failure

It went out of cash to operate and tried to sell itself to two potential buyers, but the potential sales were not successful and Beepi had to close operation.

The company had an incredibly high burn rate, spending about $7 million per month. The reasons for cash shortage were attributed mismanagement of funds to support expenditures unrelated to business such as covering the bills for the founders' partners and spendings unnecessary sums of money on expensive furnitures. At the same time, Beepi was also reported as giving disproportionately high salary and overtimes to its top management.

Besides having failed to manage the financial aspects of the startup, also Beepi’s logistics in buying and selling cars came short. Originally planning to complete an acquisition deal with Fair.com, one of its main competitors, that never happened and the company tried to negotiate with DGDG, but also this deal fell through. The company shut down in December 2016.

Go on Reading

Auctionata

Online auction platform for art & luxury

e-Commerce
Shut Down
$95.5M
Legal Challenges
e-Commerce
Germany
In 2012
By 2017
Four
Between 251 And 500
More Than 50M
Legal Challenges
Shut Down
Beepi

P2P used car online marketplace

Transportation
Acquired
$149M
Mismanagement of Funds
Transportation
United States
In 2013
By 2016
Two
Between 101 And 250
More Than 50M
Mismanagement of Funds
Acquired
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
FoundationDB

Scalable NoSQL layered database

Software and Hardware
Acquired
$22.7M
Acquisition Flu
Software and Hardware
United States
In 2009
By 2015
Three
Between 11 And 50
Between 10M 50M
Acquisition Flu
Acquired
Stereomood

Music platform that provided mood-based song listings

Music
Acquired
No Data
Acquisition Flu
Music
Italy
In 2009
By 2015
Four
Between 11 And 50
No Data
Acquisition Flu
Acquired
MatterFab

Selling affordable solutions for metal 3-D printing

Software and Hardware
Shut Down
$13.2M
Bad Business Model
Software and Hardware
United States
In 2013
By 2019
One
Between 1 And 10
Between 10M 50M
Bad Business Model
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.