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Crowdmix

Music streaming and sharing platform
Startup Cemetery
GENERAL INFORMATION
Category:
Music
Country:
United Kingdom
Started:
2013
BUSINESS FAILURE
Outcome:
Acquired
Cause:
Mismanagement of Funds
Closed:
2016
FOUNDERS & EMPLOYEES
Number of Founders:
2
Name of Founders:
Gareth Ingham, Ian Roberts
Number of Employees:
100-250
FUNDING
Number of Funding Rounds:
1
Total Funding Amount:
£14M
Number of Investors:
No Data

What was Crowdmix?

Crowdmix was to be a music streaming and sharing platform on which people could listen and talk about their favorite bands. The company released a beta invite-only version of the app for DJ and musicians. The official app was never released.

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Why did Crowdmix fail and shut down?

Crowdmix extravagantly spent £14 millions of their investors’ money long before realizing a working product to the public.

The company spent lavishly on parties, flamboyant decorations for its offices and international travel for its staff. No one had a clear vision of the product, and founders kept adding features even before having a consolidated trial version. Moreover, Crowdmix lacked a clear  HR policy. This led to overstaffing and consequently contributing to the high running costs, with people being hired to ‘raise the company profile’ rather than because they actually provided a service for the company.

The founding CEO was reportedly forced to leave the company, which was left without any other investor willing to back it up and filed for bankruptcy.

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