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.

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.

Go on Reading

Zirtual

Dedicated virtual assistants for busy professionals

Software and Hardware
Shut Down
$5.5M
Mismanagement of Funds
Software and Hardware
United States
In 2011
By 2015
Three
Between 101 And 250
Between 1M 10M
Mismanagement of Funds
Shut Down
Gowalla

Social Guide to world's cities

Social Media
Acquired
$10.4M
Competition
Social Media
United States
In 2007
By 2013
Two
Between 11 And 50
Between 10M 50M
Competition
Acquired
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
Rafter

Textbook and course material provider for schools

Education
Acquired
$86M
Competition
Education
United States
In 2006
By 2016
One
Between 51 And 100
More Than 50M
Competition
Acquired
Call9

On-demand doctors in emergency situations

Health
Shut Down
$34M
Bad Business Model
Health
United States
In 2015
By 2019
Three
Between 101 And 250
Between 10M 50M
Bad Business Model
Shut Down
Salorix

Online social network engagement platform

Analytics
Shut Down
$3.5M
Bad Management
Analytics
United States
In 2009
By 2014
One
Between 11 And 50
Between 1M 10M
Bad Management
Shut Down