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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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HiGear

Private car-sharing club for luxury and sports cars

General Information
Category
Transportation
Country
United States
Started
In 2011
Business Failure
Business Outcome
Acquired
Closed
By 2011
Cause of Failure
Legal Challenges
Founders & Employees
Number of Founders
Two
Name of Founders
Ali Moiz, Murtaza Hussain
Number of Employees
Between 1 And 10
Funding
Number of Funding Rounds
2
Total Funding Amount
$1.3M
Number of Investors
4
Description

HiGear was a San Francisco peer-to-peer online company that listed luxury cars for rent. Registered users could lease a luxury car for a determined amount of time after going through background checks and paying security deposits.

Cause of Failure

HiGear had started operations at a high note and instituted many controls to ensure smooth operations. Despite such elaborate controls, the company was forced to shut down for various reasons. The main reason that HiGear lists as having prompted them to stop the business was when a criminal gang stole four cars that had a combined worth of $400,000. The criminals succeeded in the scheme by using stolen identities to evade the company's background check controls. In an email to its customers, HiGear stated that it had the duty to protect its customers and that it opted to shut down operations until they were able to put in place proper countermeasures. HiGear was acquired but Rent4Buy in 2012.

Go on Reading

QBotix

Solar panels attached and regulated by robots

Software and Hardware
Shut Down
$23.5M
Multiple Reasons
Software and Hardware
United States
In 2010
By 2015
One
Between 11 And 50
Between 10M 50M
Multiple Reasons
Shut Down
Dazo

India's first curated food demand platform

Food and Beverage
Shut Down
No Data
Competition
Food and Beverage
India
In 2015
By 2016
Two
Between 11 And 50
No Data
Competition
Shut Down
HiGear

Private car-sharing club for luxury and sports cars

Transportation
Acquired
$1.3M
Legal Challenges
Transportation
United States
In 2011
By 2011
Two
Between 1 And 10
Between 1M 10M
Legal Challenges
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
Stratolaunch

Launching rockets into space from airplanes

Transportation
Shut Down
-
Lack of Focus
Transportation
United States
In 2010
By 2019
One
Between 501 And 1000
Nothing
Lack of Focus
Shut Down
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
This is Brought to You by:
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NoGood

Your on-demand growth squad for SaaS, B2B, and eCommerce brands.

NerdPilots

NerdPilots

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Acadium

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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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