PostRocket failure

PostRocket

Facebook page marketing platform

Description

PostRocket was a Facebook marketing platform, co-founded in October 2010. The company products and services were concentrated on marketers that needed a higher quality and more wide-ranging engagement on their Facebook pages so as to increase their sales. PostRocket had the goal of creating awareness by posting more engaging and friendly posts through the use of an algorithm that sorted out what the most effective posts for targeted users were. PostRocket helped FB page owners get custom content recommendations tailored to their specific customer base. Page owners could get Insights from their own panel which would help them optimize their post for type, frequency, content, and timing.

Stats

Category
Analytics
Country
United States
Started
In 2010
Closed
By 2013
Number of Founders
Two
Name of Founders
Murry Ivanoff, Tim Chae
Number of Employees
Between 1 And 10
Number of Funding Rounds
2
Total Funding Amount
$610K
Number of Investors
7
Precise Cause of Failure
Poor Product
Business Outcome
Shut Down

Cause of Failure

After three years of operations, Post Rocket closed down in August 2013. The CEO of the company, Timothy Chae, reported to its customers through an email some of the main reasons for the closure.

First, Chae admitted that the company had set for itself unrealistic goals, which were hard to strategize and they achieve most of them. Their product was unreliable and they were not able to quickly expand also due to how the landscape of Facebook marketing changed. Many technical issues like bugs and periods of downtime affected the quality of their service and they were not able to get rid of them since they also had to keep up with the frequent changes on the FB platform.

Most importantly, FB itself rolled out in that period it's own Insights service which any Page owner could use for free to learn about their audience, receive detailed statistic and receive optimization suggestion. Chae actually encouraged his then customers to use FB Insights in his shutdown announcement email.

Go on Reading

Other Startups

LuckyUnicorn t-Shirts
We've just launched 20 limited edition Failory t-shirts. Click here to buy one!

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.

PostRocket

Facebook page marketing platform

General Information
Category
Analytics
Country
United States
Started
In 2010
Business Failure
Business Outcome
Shut Down
Closed
By 2013
Cause of Failure
Poor Product
Founders & Employees
Number of Founders
Two
Name of Founders
Murry Ivanoff, Tim Chae
Number of Employees
Between 1 And 10
Funding
Number of Funding Rounds
2
Total Funding Amount
$610K
Number of Investors
7
Description

PostRocket was a Facebook marketing platform, co-founded in October 2010. The company products and services were concentrated on marketers that needed a higher quality and more wide-ranging engagement on their Facebook pages so as to increase their sales. PostRocket had the goal of creating awareness by posting more engaging and friendly posts through the use of an algorithm that sorted out what the most effective posts for targeted users were. PostRocket helped FB page owners get custom content recommendations tailored to their specific customer base. Page owners could get Insights from their own panel which would help them optimize their post for type, frequency, content, and timing.

Cause of Failure

After three years of operations, Post Rocket closed down in August 2013. The CEO of the company, Timothy Chae, reported to its customers through an email some of the main reasons for the closure.

First, Chae admitted that the company had set for itself unrealistic goals, which were hard to strategize and they achieve most of them. Their product was unreliable and they were not able to quickly expand also due to how the landscape of Facebook marketing changed. Many technical issues like bugs and periods of downtime affected the quality of their service and they were not able to get rid of them since they also had to keep up with the frequent changes on the FB platform.

Most importantly, FB itself rolled out in that period it's own Insights service which any Page owner could use for free to learn about their audience, receive detailed statistic and receive optimization suggestion. Chae actually encouraged his then customers to use FB Insights in his shutdown announcement email.

Go on Reading

Kiko

Ajax-style online calendar application

Productivity
Acquired
$50K
Bad Management
Productivity
United States
In 2003
By 2008
Two
Between 11 And 50
Less Than 1M
Bad Management
Acquired
SellanApp

Connected creatives with app developers

Finances
Bankruptcy
$961.1K
Failure To Pivot
Finances
The Netherlands
In 2012
By 2015
Two
Between 1 And 10
Less Than 1M
Failure To Pivot
Bankruptcy
Flowtab

Mobile app to order drinks on nightclubs

Food and Beverage
Shut Down
-
Bad Business Model
Food and Beverage
United States
In 2011
By 2013
One
Between 51 And 100
Nothing
Bad Business Model
Shut Down
Springpad

Allowed users organize projects, ideas and to-do’s

Productivity
Acquired
$7.3M
Lack of Focus
Productivity
United States
In 2008
By 2014
One
Between 11 And 50
Between 1M 10M
Lack of Focus
Acquired
Beepi

P2P used car online marketplace

Transportation
Acquired
$149M
Mismanagement of Funds
Transportation
United States
In 2013
By 2016
Two
Between 101 And 250
More Than 50M
Mismanagement of Funds
Acquired
Design Inc.

Marketplace for high-quality design work

Design
Shut Down
$2.3M
Bad Business Model
Design
United States
In 2016
By 2017
Two
Between 1 And 10
Between 1M 10M
Bad Business Model
Shut Down