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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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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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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
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
Utrip

AI-powered travel planning services

Travel
Shut Down
$6M
Mismanagement of Funds
Travel
United States
In 2012
By 2019
Two
Between 11 And 50
Between 1M 10M
Mismanagement of Funds
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
Radar Radio

UK digital radio station

Entertainment
Shut Down
-
Mismanagement of Funds
Entertainment
United Kingdom
In 2008
By 2018
One
Between 11 And 50
Nothing
Mismanagement of Funds
Shut Down
Frankly

Messaging app for frank conversations

Social Media
Shut Down
$600K
Bad Market Fit
Social Media
India
In 2014
By 2016
Two
Between 51 And 100
Less Than 1M
Bad Market Fit
Shut Down
This is Brought to You by:
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)!

Your subscription could not be saved. Please try again.
Your subscription has been successful.