LayerVault failure

LayerVault

Allowed users to store and collaborate on design work

Description

LayerVault's idea was to build a high-growth business in the design industry. The app helped you store, track, review, and deliver design work. The platform also gave its subscribers unlimited file storage and real-time updates and it had a companion iOS app. It built some good technology that explored new ideas and addressed a common need (pain) in the design community.

Stats

Category
Design
Country
United States
Started
In 2011
Closed
By 2014
Number of Founders
Two
Name of Founders
Allan Grinshtein, Kelly Sutton
Number of Employees
Between 11 And 50
Number of Funding Rounds
1
Total Funding Amount
$535K
Number of Investors
3
Precise Cause of Failure
Lack of Funds
Business Outcome
Shut Down

Cause of Failure

According to Kelly Sutton, LayerVault's CEO, the company was facing financial challenges. As a result, they exhausted their existing capital reserves and were unable to secure additional capital to sustain their services. The success of any business lies in its bottom line. LayerVault had many happy customers who routinely used the service and the way it integrated with other platforms, but it failed to build enough traction and become the go-to destination for version control.

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