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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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Formspring

Encouraged people to get to know

General Information
Category
Social Media
Country
United States
Started
In 2009
Business Failure
Business Outcome
Shut Down
Closed
By 2013
Cause of Failure
Legal Challenges
Founders & Employees
Number of Founders
Two
Name of Founders
Ade Olonoh, John Wechsler
Number of Employees
Between 11 And 50
Funding
Number of Funding Rounds
2
Total Funding Amount
$14.3M
Number of Investors
13
Description

Formspring was an anonymous Q&A forum. The platform saw a rapid growth on its launch: 1 million users in less than two months. It allowed people to anonymously ask questions and send messages to other users without having to sign up.

Cause of Failure

As with any other platform that gains its attraction for its anonymous features, Formspring’s users rushed in, but as the user base increased so did the problems that were associated with anonymity. Cyberbullying came to the level that several teen suicides were linked to the bullying that took place on the site.

The startup tried to remedy by collaborating with the MIT Lab to search for a way to discourage cyberbullying. Eventually, the site had to limit the anonymity feature but that meant that it would lose its appeal, users started decreasing and growth simply froze.

If success leaves clues, so does failure. Many platforms that focused solely on anonymous interactions had to pull out the plug because of the predictable type of behavior that people tend to have when they can’t or don’t have to be accountable for their actions, even when those actions directly endangered the psychological or physical well-being of another human being.

Go on Reading

Argyle Social

Provided social media management tools

Marketing
Shut Down
$1.6M
Competition
Marketing
United States
In 2010
By 2014
One
Between 11 And 50
Between 1M 10M
Competition
Shut Down
Fuhu

Designer and seller of cloud-served softwares

Software and Hardware
Acquired
$66.2M
Mismanagement of Funds
Software and Hardware
United States
In 2006
By 2015
Three
Between 501 And 1000
More Than 50M
Mismanagement of Funds
Acquired
Sunrise

Calendar app for mobile and desktop

Productivity
Acquired
$8.2M
Bad Business Model
Productivity
France
In 2012
By 2016
Two
Between 11 And 50
Between 1M 10M
Bad Business Model
Acquired
Seven Dreamers Laboratories

Robot that washes, dries and irons clothes

Software and Hardware
Bankruptcy
$95M
Poor Product
Software and Hardware
Japan
In 2014
By 2019
One
Between 101 And 250
More Than 50M
Poor Product
Bankruptcy
Anki

Building emotionally intelligent robots

Software and Hardware
Shut Down
$182M
Lack of Funds
Software and Hardware
United States
In 2010
By 2019
Three
Between 101 And 250
More Than 50M
Lack of Funds
Shut Down
Vine

Platform to share short looping video clips

Social Media
Shut Down
No Data
Multiple Reasons
Social Media
United States
In 2012
By 2017
Three
Between 51 And 100
No Data
Multiple Reasons
Shut Down
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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