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.

This is Brought to You by:
GetBusy

GetBusy

GetBusy keeps team communication organized, trackable and accountable.

NerdPilots

NerdPilots

Get fast, reliable web, mobile and software development help 24/7.

GrowthMentor

GrowthMentor

Get 1-on-1 advice from vetted growth experts about your business.

MorningBrew

Morning Brew

Free daily email that gives a quick 5-minute rundown of the the day's top business news.

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)!

Your subscription could not be saved. Please try again.
Your subscription has been successful.

Wesabe

Personal finance management website

General Information
Category
Finances
Country
United States
Started
In 2005
Business Failure
Business Outcome
Shut Down
Closed
By 2010
Cause of Failure
Bad Management
Founders & Employees
Number of Founders
Two
Name of Founders
Jason Knight, Marc Hedlund
Number of Employees
Between 11 And 50
Funding
Number of Funding Rounds
2
Total Funding Amount
$4.7M
Number of Investors
2
Description

Wesabe is a former Personal Finance Management system which served its clients by helping them make better financial decisions by analyzing the client’s available financial options based on the data that the clients provided Wesabe with. The actual Wesabe web application also integrated community forums which include a dozen other people who are devoted to making smarter and better financial decisions.

Cause of Failure

The tragic downfall of Wesabe can be ascribed to two major reasons.

To understand the first one, we need to talk about Yodlee. Yodlee is a company that offers an automatic data aggregation system for PFMs. This was usually done by screen-scraping the client’s bank account website activity on the supported bank corporations by Wesabe. This information is then transferred to the PFMs own platform for them to analyze. On a meeting with Wesabe, both parties never agreed to close the deal since Wesabe referred to Yodlee as a “crumbling corporation” and was afraid they wouldn’t be able to follow through. Because of these instances, Wesabe opted for a different solution. Instead of working with Yodlee, Wesabe chose to make their own data acquisition program with was to supposedly have better privacy settings for clients. This move, however, later resulted in Wesabe losing to Mint - their main competitor- since Wesabe’s data acquisition system was never fully finished. Instead, when Mint launched into the market a few months after Wesabe, it had its own data aggregation system, all thanks to their partnership with Yodlee.

Apart from that, there was also the fact that Mint provided a better and easier user experience. Mint’s system automatically categorized and edited the client’s data which resulted in a better consumer experience. While Wesabe’s clients needed to fill out more fields on sign up forms, etc. which was a little bit of a hassle for most people which often opted for the easier choice even though Wesabe’s platform was more precise and would have helped them make better financial decisions on the long run.

Go on Reading

Dinnr

Ingredients and recipe to create meals at home

Food and Beverage
Shut Down
£60K
No Market Need
Food and Beverage
United Kingdom
In 2012
By 2014
Two
Between 1 And 10
Less Than 1M
No Market Need
Shut Down
Stratolaunch

Launching rockets into space from airplanes

Transportation
Shut Down
-
Lack of Focus
Transportation
United States
In 2010
By 2019
One
Between 501 And 1000
Nothing
Lack of Focus
Shut Down
HitMeUp

Developed mobile marketing applications

e-Commerce
Shut Down
£50K
Lack of Experience
e-Commerce
United Kingdom
In 2011
By 2015
One
Between 1 And 10
Less Than 1M
Lack of Experience
Shut Down
Tilt

Social payment startup focused on crowd-funding

Finances
Acquired
$62.1M
Lack of Focus
Finances
United States
In 2012
By 2017
Three
Between 101 And 250
More Than 50M
Lack of Focus
Acquired
Brisk

Built tools for sales organizations

Marketing
Shut Down
$137K
Lack of Focus
Marketing
Sweden
In 2012
By 2016
Four
Between 11 And 50
Less Than 1M
Lack of Focus
Shut Down
Frankly

Messaging app for frank conversations

Social Media
Shut Down
$600K
Bad Market Fit
Social Media
India
In 2014
By 2016
Two
Between 51 And 100
Less Than 1M
Bad Market Fit
Shut Down
This is Brought to You by:
GetBusy

GetBusy

GetBusy keeps team communication organized, trackable and accountable.

NerdPilots

NerdPilots

Get fast, reliable web, mobile and software development help 24/7.

GrowthMentor

GrowthMentor

Get 1-on-1 advice from vetted growth experts about your business.

Bookafy

Bookafy

Provide your clients and staff with a beautiful appointment booking experience.

Bookafy

HostGator

Easy and affordable web hosting and domain services for entrepreneurs.

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)!

Your subscription could not be saved. Please try again.
Your subscription has been successful.