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.

RewardMe

Intelligent CRM solution for local commerce

General Information
Category
Marketing
Country
United States
Started
In 2010
Business Failure
Business Outcome
Shut Down
Closed
By 2015
Cause of Failure
Lack of Funds
Founders & Employees
Number of Founders
Three
Name of Founders
Jun Loayza, Stephen Johnson, Yu-kai Chou
Number of Employees
Between 11 And 50
Funding
Number of Funding Rounds
1
Total Funding Amount
$1.1M
Number of Investors
2
Description

RewardMe was the world's first real-time intelligent Customer Relationship Manager (CRM) Platform for Local Commerce and was established in 2010. The RewardMe Platform provided a way to empower trade arrangements by providing data on the consumer that could be used by local business to effectively target their consumers.

Cause of Failure

According to one of the co-founders, the major pitfall their company had fallen into was that of wanting to scale up the company prematurely. The way they did business caused to incur severe financial expenses that could have easily be avoided if the company had taken the lean approach to building its business. RewardMe acquired most of its customers by organizing expensive conferences and arranging for expensive meetings with potential investors, they also held inventory before they actually had customers for them. When they were not able to raise the next round fast enough, it disheartened a portion of the key individuals on the group. Without another financial support and having numerous key individuals worn out, RewardMe did not have any assets to push forward. They hence decided to decline the money offered by investors at the last minute as it was too late. The founders could not guarantee they could deliver and eventually suspended their services.

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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
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