Reach.ly failure

Reach.ly

Analytics tool for e-Commerce sites

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.

Stats

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

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.

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.

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.

Go on Reading:

RewardMe

Intelligent CRM solution for local commerce

Marketing
Shut Down
$1.1M
Lack of Funds
Marketing
United States
In 2010
By 2015
Three
Between 11 And 50
Between 1M 10M
Lack of Funds
Shut Down
Vine

Platform to share short looping video clips

Social Media
Shut Down
No Data
Multiple Reasons
Social Media
United States
In 2012
By 2017
Three
Between 51 And 100
No Data
Multiple Reasons
Shut Down
Delicious

Bookmarking website to save, organize and discover links

Productivity
Still Active
No Data
Acquisition Flu
Productivity
United States
In 2003
By 2017
One
Between 51 And 100
No Data
Acquisition Flu
Still Active
QBotix

Solar panels attached and regulated by robots

Software and Hardware
Shut Down
$23.5M
Multiple Reasons
Software and Hardware
United States
In 2010
By 2015
One
Between 11 And 50
Between 10M 50M
Multiple Reasons
Shut Down
Crowdmix

Music streaming and sharing platform

Music
Acquired
£14M
Mismanagement of Funds
Music
United Kingdom
In 2013
By 2016
Two
Between 101 And 250
Between 10M 50M
Mismanagement of Funds
Acquired
Dazo

India's first curated food demand platform

Food and Beverage
Shut Down
No Data
Competition
Food and Beverage
India
In 2015
By 2016
Two
Between 11 And 50
No Data
Competition
Shut Down