Grooveshark failure

Grooveshark

Web-based on-demand music application

Description

Grooveshark was the product of two young entrepreneurs. Grooveshark was a very popular streaming platform for music that was initially web-based and also had an app version for a period of time.

Stats

Category
Music
Country
United States
Started in
2006
Closed in
2015
Number of Founders
3
Name of Founders
Andres Barreto, Josh Greenberg, Sam Tarantino
Number of Employees
51-100
Number of Funding Rounds
3
Total Funding Amount
$4.6M
Number of Investors
No Data

Cause of Failure

Grooveshark technology was worth of being admired, especially considering that it was an underfunded venture built by two college students who were learning about business as they went.

Grooveshark major weakness was that it illegally streamed music. The company was sued by multiple record labels and the app was subsequently banned from mobile marketplaces. The company shut down in April 2015 and the platform founder was found dead in his room a couple of months later.

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