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.

Transpose

Smart workspace for businesses to manage projects

General Information
Category
Productivity
Country
United States
Started
In 2015
Business Failure
Business Outcome
Shut Down
Closed
By 2015
Cause of Failure
Bad Business Model
Founders & Employees
Number of Founders
Four
Name of Founders
Hussein Ahmed, Matt Goyer, Samah Gad, Skyler Johnson-Wagner
Number of Employees
Between 11 And 50
Funding
Number of Funding Rounds
1
Total Funding Amount
$1.5M
Number of Investors
2
Description

Transpose, a Seattle startup which initially took off as a note-taking app known as KustomNote, decided subsequently to implement a major strategy shift that would give full attention to its business customers. Transpose then grew into a more comprehensive information management platform, changed its name and introduced new features. It also started charging its users a monthly fee of $14.99 per to access to its tools while keeping a limited-access free plan.

Cause of Failure

Transpose operated for about two years before shutting down on December 9th, 2016 citing the inability to generate enough revenue to sustain the business as one of the main culprits. Although no further details were divulged following such closure, the company probably failed in its marketing strategy and product placement. Another possible reason for low revenue generation could have been the company's product pricing strategy which might have not resonate well with its initial clients that had originally used the app as an alternative to Evernote.

Go on Reading

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
Flowtab

Mobile app to order drinks on nightclubs

Food and Beverage
Shut Down
-
Bad Business Model
Food and Beverage
United States
In 2011
By 2013
One
Between 51 And 100
Nothing
Bad Business Model
Shut Down
Karhoo

Cab aggregator and price comparison tool

Transportation
Acquired
$39M
Poor Product
Transportation
United Kingdom
In 2014
By 2016
One
Between 51 And 100
Between 10M 50M
Poor Product
Acquired
HotelsAroundYou

Booking of same-day hotel rooms

Travel
Shut Down
$125.4K
Competition
Travel
India
In 2013
By 2017
Three
Between 1 And 10
Less Than 1M
Competition
Shut Down
DotCloud

Enabled developers to host, assemble and run their applications

Software and Hardware
Bankruptcy
$13.7M
Mismanagement of Funds
Software and Hardware
United States
In 2008
By 2016
One
Between 251 And 500
Between 10M 50M
Mismanagement of Funds
Bankruptcy
Alikolo

Online marketplace organization

e-Commerce
Shut Down
$100K
Lack of Experience
e-Commerce
Indonesia
In 2014
By 2015
One
Between 1 And 10
Less Than 1M
Lack of Experience
Shut Down