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.

Verelo

Offered website monitoring services

General Information
Category
Analytics
Country
Canada
Started
In 2012
Business Failure
Business Outcome
Acquired
Closed
By 2012
Cause of Failure
Lack of Funds
Founders & Employees
Number of Founders
Two
Name of Founders
McGrath, Michael Curry
Number of Employees
Between 1 And 10
Funding
Number of Funding Rounds
1
Total Funding Amount
No Data
Number of Investors
1
Description

Verelo was a Canadian startup that offered website monitoring services from multiple locations that notified customers when downtime, malware, or database connections were detected. It also offered uptime and performance analytics, monitoring site health and reporting services through SMS, email or phone. The website monitoring was enabled on the client’s blog or site and started checking and reporting problems should they arise. Their notifications were not an “add-on-service” but were part of the core product offering.

Cause of Failure

The main problem for Verelo was inadequate funding and traction that was required to push the company to the next stage. It failed to receive financial backing needed to fulfill their main goal of making the internet great. After barely six months of operation, Verelo announced its closure and was acquired by Dyn an infrastructure service company in January 2013. Dyn the acquirer was a pioneer in cloud-based infrastructure (Dyn was then acquired by Oracle in 2016). It connected users with digital contents and awesome experiences across the internet. By rolling in Verelo, Dyn was able to offer more innovative services to their customers.

Verelo also faced stiff competition from other firms as it was difficult to convince customers that your service is better unless you offered something groundbreaking or without users having expertise on monitoring technology and businesses and were able to make informed decisions. Moreover, people would mostly sign up once and rarely visit the website again because since they wouldn’t experience any major issue.

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