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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Grooveshark

Web-based on-demand music application

General Information
Category
Music
Country
United States
Started
In 2006
Business Failure
Business Outcome
Shut Down
Closed
By 2015
Cause of Failure
Legal Challenges
Founders & Employees
Number of Founders
Three
Name of Founders
Andres Barreto, Josh Greenberg, Sam Tarantino
Number of Employees
Between 51 And 100
Funding
Number of Funding Rounds
3
Total Funding Amount
$4.6M
Number of Investors
No Data
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.

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.

Go on Reading

Parse

Cloud-based software developer kits

Software and Hardware
Shut Down
$7M
Acquisition Flu
Software and Hardware
United States
In 2011
By 2016
Four
Between 11 And 50
Between 1M 10M
Acquisition Flu
Shut Down
Dopplr

Social travel network service

Travel
Shut Down
No Data
Acquisition Flu
Travel
United States
In 2007
Active
Five
Between 1 And 10
No Data
Acquisition Flu
Shut Down
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
Circa

Mobile news app on diverse topics

Productivity
Acquired
$4.7M
Multiple Reasons
Productivity
United States
In 2011
By 2015
Three
Between 11 And 50
Between 1M 10M
Multiple Reasons
Acquired
Stereomood

Music platform that provided mood-based song listings

Music
Acquired
No Data
Acquisition Flu
Music
Italy
In 2009
By 2015
Four
Between 11 And 50
No Data
Acquisition Flu
Acquired
Aria Insights

Air vehicles for search and rescue missions

Software and Hardware
Shut Down
$39M
Multiple Reasons
Software and Hardware
United States
In 2008
By 2019
One
Between 11 And 50
Between 10M 50M
Multiple Reasons
Shut Down
This is Brought to You by:
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GetBusy

GetBusy keeps team communication organized, trackable and accountable.

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Get fast, reliable web, mobile and software development help 24/7.

GrowthMentor

GrowthMentor

Get 1-on-1 advice from vetted growth experts about your business.

Bookafy

Bookafy

Provide your clients and staff with a beautiful appointment booking experience.

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HostGator

Easy and affordable web hosting and domain services for entrepreneurs.

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