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.

Design Inc.

Marketplace for high-quality design work

General Information
Category
Design
Country
United States
Started
In 2016
Business Failure
Business Outcome
Shut Down
Closed
By 2017
Cause of Failure
Bad Business Model
Founders & Employees
Number of Founders
Two
Name of Founders
Bjoern Zinssmeister, Marc Hemeon
Number of Employees
Between 1 And 10
Funding
Number of Funding Rounds
1
Total Funding Amount
$2.3M
Number of Investors
No Data
Description

Design Inc. was a startup that linked clients to talented designers. Clients would post on the site the projects they needed to get done. Design Inc. allowed designers to autonomously send proposals for the projects they would like to work on while charging a small fee for it. The platform helped designers all over the world to find their dream projects and companies were happy to be able to choose from a talented pool of designers.

Cause of Failure

Design Inc. reached market saturation after some time. The number of projects and companies were not increasing and the startup could not make enough revenue to cover operation costs. This put the company in a low cash situation and they founder took the decision to close it down.

Design Inc. CEO identified a number of reasons that he believed contributed to the failure of his company. He stated that he should have been more focused on the essentials of business, which is getting more leads and profit. He also mentioned that a startup founder should also test his assumptions and keep on optimizing the product in every little way. Team members should also be encouraged to experiment without fear.

Another broader issue that is not exclusively linked to Design Inc. may be with the business model itself since the design field is considered a top-end market where job posts are scarce by nature. Too many designers compete for only a limited number of design jobs, thus causing the market to saturate too soon. Another reason why the company might have not witnessed a growth in its network could have been due to the fact that although designers are introduced to the clients by Design Inc. platform, in the end, they might decide to continue their business transactions independently from the marketplace.

Go on Reading

Radar Radio

UK digital radio station

Entertainment
Shut Down
-
Mismanagement of Funds
Entertainment
United Kingdom
In 2008
By 2018
One
Between 11 And 50
Nothing
Mismanagement of Funds
Shut Down
Transpose

Smart workspace for businesses to manage projects

Productivity
Shut Down
$1.5M
Bad Business Model
Productivity
United States
In 2015
By 2015
Four
Between 11 And 50
Between 1M 10M
Bad Business Model
Shut Down
Wantful

Online gift-giving service

e-Commerce
Shut Down
$5.5M
Competition
e-Commerce
United States
In 2011
By 2013
One
More Than 10000
Between 1M 10M
Competition
Shut Down
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
Rafter

Textbook and course material provider for schools

Education
Acquired
$86M
Competition
Education
United States
In 2006
By 2016
One
Between 51 And 100
More Than 50M
Competition
Acquired
Theranos

Consumer healthcare technology company

Health
Shut Down
$1.4B
Legal Challenges
Health
United States
In 2003
By 2018
One
Between 11 And 50
More Than 50M
Legal Challenges
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.