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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Reach.ly

Analytics tool for e-Commerce sites

General Information
Category
Analytics
Country
Latvia
Started
In 2011
Business Failure
Business Outcome
Shut Down
Closed
By 2015
Cause of Failure
Multiple Reasons
Founders & Employees
Number of Founders
One
Name of Founders
Ernests Štāls
Number of Employees
Between 1 And 10
Funding
Number of Funding Rounds
3
Total Funding Amount
€200K
Number of Investors
2
Description

Reach.ly was an analytics tool for e-commerce sites providing actionable customer behavior patterns. It engaged in a real-time analytics infrastructure, which allowed e-commerce sites engage with their customers through customized messages. Their websites tailored to uncover customer behavior and enable real-time personalization. It helped the site owners understand sales and conversion rate comparison between various channels. The customers’ behavior patterns were uncovered by deploying machine for recognizing patterns and learning.

Cause of Failure

Reach.ly had purposed two objectives before its closure in 2015. Its iterations were behavioral analytics for e-commerce and Twitter mining solutions for hotel industries. The company, by the CEO own admission, failed because it mixed up ideas and models of the previous business into the new venture. Reach.ly did not start afresh but kept all the previous undertakings in operation. It lacked room for other investors and only survived on the CEO shares. Secondly, technology failed them terribly. It started out big but it did not scale up, the regret was that it could have started with a simple stack to test the idea. The free hosting received from Soft layer led the company to spend too much on technology without a single customer or a working prototype.

Lack of proper market feedback and pilot client was also a setback. It did not create appropriate tracking solution and their data set had loopholes. Without any consultation, they switched to another platform called Shopify with standardized API and app marketplace. It turned out that the Shopify players were smaller than expected and thus failed to serve Reach.ly goals. Lastly, the initial team recruited was heavily technology-centric and lacked teamwork, passion and business vision. A big part of the team eventually left the firm or was let go; precious time and resources were spent to find a new committed and talented team. Had this been done from the beginning the company might have has a better chance of succeeding.

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Wantful

Online gift-giving service

e-Commerce
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$5.5M
Competition
e-Commerce
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In 2011
By 2013
One
More Than 10000
Between 1M 10M
Competition
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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
PoliMobile

Empowered campaigns with the power of mobile

Marketing
Shut Down
-
No Market Need
Marketing
United States
In 2011
By 2015
One
Between 1 And 10
Nothing
No Market Need
Shut Down
MySpace

Social network based on personal user pages

Social Media
Still Active
$37.8M
Multiple Reasons
Social Media
United States
In 2003
Active
Seven
Between 251 And 500
Between 10M 50M
Multiple Reasons
Still Active
Argyle Social

Provided social media management tools

Marketing
Shut Down
$1.6M
Competition
Marketing
United States
In 2010
By 2014
One
Between 11 And 50
Between 1M 10M
Competition
Shut Down
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
This is Brought to You by:
Tuff

Tuff

Grow your business with less hassle, risk, and cost with an on-demand marketing team.

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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