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.

OpTier

Cloud-based enterprise software business

General Information
Category
Analytics
Country
United States
Started
In 2002
Business Failure
Business Outcome
Shut Down
Closed
By 2014
Cause of Failure
Bad Market Fit
Founders & Employees
Number of Founders
Two
Name of Founders
Amir Alon, Motti Tal
Number of Employees
Between 51 And 100
Funding
Number of Funding Rounds
9
Total Funding Amount
$118.1M
Number of Investors
8
Description

Optier was a cloud-based enterprise software business and provided customers with a business transaction monitoring platform. OpTier services included an Application Performance Management (APM) which helped businesses manage and optimize their projects with the help of contextualized large data. Optier technology provided a way to empower trade arrangements by analyzing billions of business transactions daily and offered insights that aimed at helping companies proactively manage their businesses.

Cause of Failure

One of the main reasons that were recognized as having pushed the founders of Optier to discontinue the application was the little market share, revenue and investment capital to re-position and regain growth. The company had raised over $100m in the seed funding but never kept pace with the market changes.

OpTier was founded when websites were the main center of attention were website-based application and their technology required months in order to provide meaningful transactions monitoring. However new companies were now able to provide the same service in a matter of hours and OpTier wasn’t quick enough to adapt to the new market expectations.

Another element that factored in OpTier becoming suddenly obsolete was the launch of the iPhone and the start of the mobile based applications. Mobile phone brought up a system of interaction compared to the later where the focus was on monitoring system performance and APM had to expand to analyze customer trends across multiple channels. Again OpTier, which had already started experience losses, lacked enough capital to implement such profound changes to its technology so as to meet the new customers’ demands.

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