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

Kichit

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Zulily

Online retailer that offered daily deals

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TeeBeeDee

Network for people over 40 to share experiences

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Shut Down
$4.8M
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Social Media
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In 2007
By 2009
Four
Between 11 And 50
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Bad Business Model
Shut Down
Tilt

Social payment startup focused on crowd-funding

Finances
Acquired
$62.1M
Lack of Focus
Finances
United States
In 2012
By 2017
Three
Between 101 And 250
More Than 50M
Lack of Focus
Acquired
Stayzilla

Indian homestay network

Travel
Shut Down
$34M
Lack of Focus
Travel
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In 2005
By 2017
Four
Between 251 And 500
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Lack of Focus
Shut Down
Mailbox

Inbox that made email light, fast, and mobile-friendly.

Productivity
Shut Down
$5M
Bad Business Model
Productivity
United States
In 2011
By 2015
Two
Between 501 And 1000
Between 1M 10M
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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