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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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Teforia

A tea brewer machine connected with an application

General Information
Category
Food and Beverage
Country
United States
Started
In 2014
Business Failure
Business Outcome
Shut Down
Closed
By 2017
Cause of Failure
No Market Need
Founders & Employees
Number of Founders
Two
Name of Founders
Allen Han, Kris Efland
Number of Employees
Between 11 And 50
Funding
Number of Funding Rounds
2
Total Funding Amount
$17.1M
Number of Investors
9
Description

Teforia was a tea brewer that would supposedly yield the perfect cup of tea by combining traditional brewing with the power of smart technology. The app was connected to Wi-Fi, had Bluetooth capabilities and a designated mobile app to start the machine, gain info about the tea leaves, stats and an option to teak the brewing process. Teforia initially costed over $1000, the company also sold prepackaged leaf packets.

Cause of Failure

The first reason why Teforia was deemed to fail despite the substantial capital it raised was the absence of market fit for the product. Even if tea enthusiast were so particular about their tea they would have thought twice about spending a $1K on a tea making machine. The problem was also the fact that according to some reviews the tea didn’t taste better than that made in the traditional manner. The accompanying sets of cups were also delicate and high maintenance, which defeated the stated purpose the app of making the tea ritual more convenient and enjoyable. The company claimed that people were not ready nor ‘learned’ enough to appreciate the fine details that made the product so needed.

It is also plausible to think that people became skeptic of smart kitchen products when, during the same period, a similarly high-priced machine that pressed vegetable to make the ‘perfect glass of fresh juice’, the Juicero, was publicly shown to be perfectly useless.

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