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.

Salorix

Online social network engagement platform

General Information
Category
Analytics
Country
United States
Started
In 2009
Business Failure
Business Outcome
Shut Down
Closed
By 2014
Cause of Failure
Bad Management
Founders & Employees
Number of Founders
One
Name of Founders
Santanu Bhattacharya
Number of Employees
Between 11 And 50
Funding
Number of Funding Rounds
2
Total Funding Amount
$3.5M
Number of Investors
2
Description

Salorix was a Bangalore-based agency that offered an online networking engagement platform for brands. Through Amplify, as the AI based service was called, brands could “listen in” on ongoing social discussions which would be ranked to distinguish the most relevant key themes and influencers over different businesses for their clients. Solarix was considered to have a cutting-edge product and even received twice acquisition offers from Google in 2012 and 2013.

Cause of Failure

Salorix closed down in because of inability to raise reserves after its major investors stopped supporting it. This was following a disagreement between the founder and investors over securing an offer from Google. The investors were excited about the Google offer and saw it as a good business opportunity while the Salorix founder was not awed with it.

Rumors have it that Salorix CEO asked for a higher price but Google refused and the deal didn’t go through. Soon after it was clear that the founder would not listen to their wishes and advice, investors put a stop to any additional financial support (after having initially backed up the startup with $3.5 million in Series A investment). Salorix was not able to sum enough capital elsewhere and shut down in 2014.

Go on Reading

Formspring

Encouraged people to get to know

Social Media
Shut Down
$14.3M
Legal Challenges
Social Media
United States
In 2009
By 2013
Two
Between 11 And 50
Between 10M 50M
Legal Challenges
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
Transpose

Smart workspace for businesses to manage projects

Productivity
Shut Down
$1.5M
Bad Business Model
Productivity
United States
In 2015
By 2015
Four
Between 11 And 50
Between 1M 10M
Bad Business Model
Shut Down
Circa

Mobile news app on diverse topics

Productivity
Acquired
$4.7M
Multiple Reasons
Productivity
United States
In 2011
By 2015
Three
Between 11 And 50
Between 1M 10M
Multiple Reasons
Acquired
Sprig

Online app that provided healthy organic meals

Food and Beverage
Shut Down
$56.7M
Competition
Food and Beverage
United States
In 2013
By 2017
Four
Between 51 And 100
More Than 50M
Competition
Shut Down
Lumos

Internet of things startup on switching technology

Software and Hardware
Shut Down
No Data
Lack of Experience
Software and Hardware
India
In 2014
By 2015
Three
Between 1 And 10
No Data
Lack of Experience
Shut Down