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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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Rdio

Digital music service provider

General Information
Category
Music
Country
United States
Started
In 2008
Business Failure
Business Outcome
Bankruptcy
Closed
By 2015
Cause of Failure
Competition
Founders & Employees
Number of Founders
Three
Name of Founders
Carter Adamson, Janus Friis, Niklas Zennström
Number of Employees
Between 51 And 100
Funding
Number of Funding Rounds
6
Total Funding Amount
$125.7M
Number of Investors
5
Description

Rdio was among the first modern music streaming services to hit the American market. Rdio developers wanted to offer a product that was beautiful, flawless and social. One of the interesting features of that app was that it would show you what your friends were listening to and would give you music recommendations based on your circle of friends’ playlists.

Cause of Failure

Although Rdio developed an excellent product, its weakness was in the close to non-existent marketing and distribution department. The fact that they reached the market before Spotify, didn’t help them as they little momentum they initially had was completely lost once Spotify appeared on the scene.

For one, Spotify had an impressive marketing strategy and a business model that made it easier for them to gain more subscribers. While Rdio required users to become paying customers to listen to their streaming service, Spotify broke that entry barrier and offered free music thanks to the paid advertising it incorporated into its product.

Rdio tried a couple of pivoting strategies but these came too late and Spotify had already gained 75 million users (they surpassed 140 million in 2017, 50 million of which were paying subscribers). A mix of bad timing, reluctant leadership, and wrong priorities was what finally caused Rdio to go out of business.

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Netscape

Developed enterprise software solutions

Productivity
Shut Down
No Data
Poor Product
Productivity
United States
In 1994
By 2008
Three
Between 5001 And 10000
No Data
Poor Product
Shut Down
Theranos

Consumer healthcare technology company

Health
Shut Down
$1.4B
Legal Challenges
Health
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In 2003
By 2018
One
Between 11 And 50
More Than 50M
Legal Challenges
Shut Down
99dresses

Virtual closet to trade fashion items

e-Commerce
Shut Down
$105.7K
Multiple Reasons
e-Commerce
Australia
In 2010
By 2014
One
Between 1 And 10
Less Than 1M
Multiple Reasons
Shut Down
Digg

Enables users to share interesting stories

Social Media
Still Active
$49M
Competition
Social Media
United States
In 2004
Active
One
Between 51 And 100
Between 10M 50M
Competition
Still Active
Laurel & Wolf

Online interior design marketplace

e-Commerce
Shut Down
$25.5M
Multiple Reasons
e-Commerce
United States
In 2014
Active
Two
Between 51 And 100
Between 10M 50M
Multiple Reasons
Shut Down
WOW Air

Ultra-low-cost transatlantic airline service

Transportation
Bankruptcy
-
Multiple Reasons
Transportation
Iceland
In 2011
By 2019
One
Between 51 And 100
No Data
Multiple Reasons
Bankruptcy
This is Brought to You by:
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NoGood

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

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.

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