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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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Sprig

Online app that provided healthy organic meals

General Information
Category
Food and Beverage
Country
United States
Started
In 2013
Business Failure
Business Outcome
Shut Down
Closed
By 2017
Cause of Failure
Competition
Founders & Employees
Number of Founders
Four
Name of Founders
Gagan Biyani, Matt Kent, Morgan Springer, Neeraj Berry
Number of Employees
Between 51 And 100
Funding
Number of Funding Rounds
4
Total Funding Amount
$56.7M
Number of Investors
26
Description

Sprig delivered high-end meals to customers who were looking for healthy and nutritional menu choices.

This meal-based startup provided fast delivery times with low or no fees whenever there was low demand. The company also dominated in terms of quality of ingredients and transparency in the nutritional value. The ingredients were sometimes inspected from the point of origin by the chef so as to ensure that they had the best quality. All the ingredients used for the meals were locally-sourced, sustainable, and seasonal.

Cause of Failure

The on-demand food business was a tough arena to venture in. Sprig tried to handle all elements of the experience, like sourcing, cooking and delivering the food but soon found the whole process time consuming and besides being expensive, it required a continuous and seamless management and integrated logistics.

Sprig would sometimes deliver free of change to the clients, but this raised expenses and caused them to have a lower profit margin. They also struggled to pay workers, working premises bills and the necessary products.

Another downside with delivery-based food services like Sprig was that they did not offer a place where customers could go and have meals, while often a good dining experience and service is what entices people to become repeat customers.

Spring had a shortage of finance to run its business and faced stiff competition from other already established companies such as Seamless, UberEats, Blue Apron and Domino.

Go on Reading

SpoonRocket

Next-gen, ultra-fast delivery platform

Food and Beverage
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$13.5M
Competition
Food and Beverage
United States
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Two
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ArsDigita

Agency that built solutions for e-commerce

e-Commerce
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Lack of Experience
e-Commerce
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Seven
Between 51 And 100
Between 10M 50M
Lack of Experience
Shut Down
Wantful

Online gift-giving service

e-Commerce
Shut Down
$5.5M
Competition
e-Commerce
United States
In 2011
By 2013
One
More Than 10000
Between 1M 10M
Competition
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
Mailbox

Inbox that made email light, fast, and mobile-friendly.

Productivity
Shut Down
$5M
Bad Business Model
Productivity
United States
In 2011
By 2015
Two
Between 501 And 1000
Between 1M 10M
Bad Business Model
Shut Down
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
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)!

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