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:
GetBusy

GetBusy

GetBusy keeps team communication organized, trackable and accountable.

NerdPilots

NerdPilots

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

GrowthMentor

GrowthMentor

Get 1-on-1 advice from vetted growth experts about your business.

MorningBrew

Morning Brew

Free daily email that gives a quick 5-minute rundown of the the day's top business news.

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

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
Tilt

Social payment startup focused on crowd-funding

Finances
Acquired
$62.1M
Lack of Focus
Finances
United States
In 2012
By 2017
Three
Between 101 And 250
More Than 50M
Lack of Focus
Acquired
Verelo

Offered website monitoring services

Analytics
Acquired
No Data
Lack of Funds
Analytics
Canada
In 2012
By 2012
Two
Between 1 And 10
No Data
Lack of Funds
Acquired
Skully

Augmented reality motorcycle helmets

Transportation
Shut Down
$15M
Mismanagement of Funds
Transportation
United States
In 2013
By 2016
One
Between 11 And 50
Between 10M 50M
Mismanagement of Funds
Shut Down
Monitor110

Real-time internet monitoring services

Analytics
Shut Down
$17.3M
Multiple Reasons
Analytics
United States
In 2003
By 2008
One
Between 1 And 10
Between 10M 50M
Multiple Reasons
Shut Down
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:
GetBusy

GetBusy

GetBusy keeps team communication organized, trackable and accountable.

NerdPilots

NerdPilots

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

GrowthMentor

GrowthMentor

Get 1-on-1 advice from vetted growth experts about your business.

Bookafy

Bookafy

Provide your clients and staff with a beautiful appointment booking experience.

Bookafy

HostGator

Easy and affordable web hosting and domain services for entrepreneurs.

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.