Fuhu failure

Fuhu

Designer and seller of cloud-served softwares

Description

Fuhu Inc. is most famously associated with the Nabi series of Tablets. Among the first product they came up with was urFooz which were digital trading cards, urDrive a software that permitted devices to install and run the applications straight from a USB device, and Fooz Kids a mobile device platform which was a safe browser for kids that enabled access to only selected areas of the internet. The Nabi series of red padded tablets for kids, however, is their signature product.

Stats

Category
Software and Hardware
Country
United States
Started
In 2006
Closed
By 2015
Number of Founders
Three
Name of Founders
John Hui, Robb Fujioka, Steve Hui
Number of Employees
Between 501 And 1000
Number of Funding Rounds
5
Total Funding Amount
$66.2M
Number of Investors
8
Precise Cause of Failure
Mismanagement of Funds
Business Outcome
Acquired

Cause of Failure

Fuhu went bankrupt, even though it ranked 1st on the Inc 500 companies list for two years in a row.

The company amassed an enormous amount of debt and had a very high burn rate. The level of disregard for any type of financial management was so high that the firm had only one accountant and one bookkeeper despite its 300+ employees.

Fuhu had one good idea which brought them to the top, but could never replicate it and kept borrowing money in the millions from various companies with the hope that they will be able to produce the next Nabi and break even.

In particular, Fuhu owed Foxconn, a Chinese hardware manufacturer, between $60 million to $110 million. The Chinese giant had previously already demanded from Fuhu to restrict its operations costs but little was done on that front. Suddenly the company just decided to stop backing up Fuhu and everything fell apart for the private U.S. based company.

Later, Mattel purchased Fuhu’s assets for just $21.5 million. Fuhu’s CEO, Robb Fujioka, still hopes to come back with alternative ideas that will revolutionize the world and seems to have considered Fuhu’s faith as an experience every major entrepreneur faces at some point of their career.

Go on Reading

Other Startups

Fuhu

Designer and seller of cloud-served softwares

General Information
Category
Software and Hardware
Country
United States
Started
In 2006
Business Failure
Business Outcome
Acquired
Closed
By 2015
Cause of Failure
Mismanagement of Funds
Founders & Employees
Number of Founders
Three
Name of Founders
John Hui, Robb Fujioka, Steve Hui
Number of Employees
Between 501 And 1000
Funding
Number of Funding Rounds
5
Total Funding Amount
$66.2M
Number of Investors
8
Description

Fuhu Inc. is most famously associated with the Nabi series of Tablets. Among the first product they came up with was urFooz which were digital trading cards, urDrive a software that permitted devices to install and run the applications straight from a USB device, and Fooz Kids a mobile device platform which was a safe browser for kids that enabled access to only selected areas of the internet. The Nabi series of red padded tablets for kids, however, is their signature product.

Cause of Failure

Fuhu went bankrupt, even though it ranked 1st on the Inc 500 companies list for two years in a row.

The company amassed an enormous amount of debt and had a very high burn rate. The level of disregard for any type of financial management was so high that the firm had only one accountant and one bookkeeper despite its 300+ employees.

Fuhu had one good idea which brought them to the top, but could never replicate it and kept borrowing money in the millions from various companies with the hope that they will be able to produce the next Nabi and break even.

In particular, Fuhu owed Foxconn, a Chinese hardware manufacturer, between $60 million to $110 million. The Chinese giant had previously already demanded from Fuhu to restrict its operations costs but little was done on that front. Suddenly the company just decided to stop backing up Fuhu and everything fell apart for the private U.S. based company.

Later, Mattel purchased Fuhu’s assets for just $21.5 million. Fuhu’s CEO, Robb Fujioka, still hopes to come back with alternative ideas that will revolutionize the world and seems to have considered Fuhu’s faith as an experience every major entrepreneur faces at some point of their career.

Go on Reading

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
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
Auctionata

Online auction platform for art & luxury

e-Commerce
Shut Down
$95.5M
Legal Challenges
e-Commerce
Germany
In 2012
By 2017
Four
Between 251 And 500
More Than 50M
Legal Challenges
Shut Down
Zulily

Online retailer that offered daily deals

e-Commerce
Shut Down
$194.6M
Bad Marketing
e-Commerce
United States
In 2009
By 2014
Two
Between 1001 And 5000
More Than 50M
Bad Marketing
Shut Down
Zirtual

Dedicated virtual assistants for busy professionals

Software and Hardware
Shut Down
$5.5M
Mismanagement of Funds
Software and Hardware
United States
In 2011
By 2015
Three
Between 101 And 250
Between 1M 10M
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