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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.

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WOW Air

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Bankruptcy
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Multiple Reasons
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By 2019
One
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Multiple Reasons
Bankruptcy
Friendster

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

Cloud-based enterprise software business

Analytics
Shut Down
$118.1M
Bad Market Fit
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In 2002
By 2014
Two
Between 51 And 100
More Than 50M
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Shut Down
Utrip

AI-powered travel planning services

Travel
Shut Down
$6M
Mismanagement of Funds
Travel
United States
In 2012
By 2019
Two
Between 11 And 50
Between 1M 10M
Mismanagement of Funds
Shut Down
RoomsTonite

Las-minute hotel booking provider

Travel
Bankruptcy
$1.5M
Lack of Funds
Travel
India
In 2014
By 2017
One
Between 101 And 250
Between 1M 10M
Lack of Funds
Bankruptcy
Sidecar

Provided B2B delivery transportation network

Transportation
Acquired
$45.5M
Competition
Transportation
United States
In 2011
By 2015
Two
Between 51 And 100
Between 10M 50M
Competition
Acquired
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)!

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