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

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
Crowdmix

Music streaming and sharing platform

Music
Acquired
£14M
Mismanagement of Funds
Music
United Kingdom
In 2013
By 2016
Two
Between 101 And 250
Between 10M 50M
Mismanagement of Funds
Acquired
Sharingear

Marketplace for musicians to rent their instruments

Music
Shut Down
€15K
Multiple Reasons
Music
Denmark
In 2014
By 2015
One
Between 1 And 10
Less Than 1M
Multiple Reasons
Shut Down
Tutorspree

Web-based tuition services

Education
Acquired
$1.8M
Bad Marketing
Education
United States
In 2010
By 2013
Three
Between 51 And 100
Between 1M 10M
Bad Marketing
Acquired
Salorix

Online social network engagement platform

Analytics
Shut Down
$3.5M
Bad Management
Analytics
United States
In 2009
By 2014
One
Between 11 And 50
Between 1M 10M
Bad Management
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:
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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