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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.

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Desti

Online travel guide app

General Information
Category
Travel
Country
United States
Started
In 2011
Business Failure
Business Outcome
Acquired
Closed
By 2014
Cause of Failure
Bad Business Model
Founders & Employees
Number of Founders
Three
Name of Founders
Imri Goldberg, Mosi Shuchman, Nadav Gur
Number of Employees
Between 1 And 10
Funding
Number of Funding Rounds
2
Total Funding Amount
$2M
Number of Investors
3
Description

Desti -a spin-out from SRI International- was a traveling and mapping iPad app that used AI to help its user plan their trips and find the best destination based on their preferences. After the user set his preferences the app would essentially work as a search engine finding hotels, restaurants or any other location based on the data and reviews found online regarding said destination. It would then choose and present the one that most closely matched the user's specifications.

Cause of Failure

Desti wasn’t a faulty app on its own, nor were its services obsolete. The problem seemed to be that although users found the application to be useful and appreciated its location suggestions, they ultimately ended up doing the booking from other more trusted platforms or known brands. It followed that due to its failure to generate revenue from its service, investments came short in the Series A round.

There was also the fact that Desti was a newcomer in a sector which had already several giants such as TripAdvisor and Lonely Planet competing against themselves and to which users automatically resorted to.

Desti was ultimately acquired by Nokia with several members of the Desti team also ending up joining the Finnish multinational company. Nokia said that it planned to use the powerful semantic back-end search engine technology provided by Desti to enhance Nokia’s maps platform, creating thus a revolutionary type of location services that understands and perhaps anticipates users’ destination preferences.

Go on Reading

Friendster

Social gaming site focused on entertainment

Social Media
Shut Down
$48.5M
Bad Market Fit
Social Media
Philippines
In 2001
By 2015
One
Between 11 And 50
Between 10M 50M
Bad Market Fit
Shut Down
DotCloud

Enabled developers to host, assemble and run their applications

Software and Hardware
Bankruptcy
$13.7M
Mismanagement of Funds
Software and Hardware
United States
In 2008
By 2016
One
Between 251 And 500
Between 10M 50M
Mismanagement of Funds
Bankruptcy
Shipbeat

Shipping API for e-commerce companies

e-Commerce
Bankruptcy
€1.2M
Multiple Reasons
e-Commerce
Denmark
In 2014
By 2016
Two
Between 11 And 50
Between 1M 10M
Multiple Reasons
Bankruptcy
Design Inc.

Marketplace for high-quality design work

Design
Shut Down
$2.3M
Bad Business Model
Design
United States
In 2016
By 2017
Two
Between 1 And 10
Between 1M 10M
Bad Business Model
Shut Down
Kno

Education software startup

Education
Acquired
$94.9M
Competition
Education
United States
In 2009
By 2013
Two
More Than 10000
More Than 50M
Competition
Acquired
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
This is Brought to You by:
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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.

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