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:
Acadium

Acadium

120 hours of digital marketing from a remote apprentice for only $299 (+ $50 off!)

NerdPilots

NerdPilots

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

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.

Zirtual

Dedicated virtual assistants for busy professionals

General Information
Category
Software and Hardware
Country
United States
Started
In 2011
Business Failure
Business Outcome
Shut Down
Closed
By 2015
Cause of Failure
Mismanagement of Funds
Founders & Employees
Number of Founders
Three
Name of Founders
Collin Vine, Erik Jensen, Maren Kate Donovan
Number of Employees
Between 101 And 250
Funding
Number of Funding Rounds
4
Total Funding Amount
$5.5M
Number of Investors
10
Description

Zirtual was an online agency that provided services for companies. The firm essentially worked as a matchmaker between busy entrepreneurs with small companies with efficient and ready to work virtual assistants (VA). The company was quite successful and at its height employed over 400 people based in the U.S, from 39 States. The Zirtual Assistants (ZAs, as they were called) took care of assigned administrative tasks, from scheduling meetings, answering emails, making arrangements for travel but also did research and were recruited to build social engagement.

Cause of Failure

Zirtual was a successful and highly on demand service. What brought the firm on the verge of bankruptcy was its management and the high burn rate it had.

Scaling too soon, with 500 employees on the payroll when the company has not yet celebrated its 5th anniversary, usually gives way to an unsustainable business. Zirtual’s co-founder and CEO had failed to calculate the stats and figures of its business, although she states that it was the accounting firm they had contracted that gave them the wrong numbers. When a supposedly agreed upon round of funds didn’t come through, Zirtual shut down overnight. Within days of Zirtual closing, came news that the CEO of the company Startups - a platform helping new entrepreneurs and small businesses take off -  offered to purchase Zirtual. The deal took place and Zirtual, with all of its assets, and a percentage of its employees became the property of Startups.co.

Go on Reading

ChaCha

Search engine with a live human being

Software and Hardware
Shut Down
$96M
Competition
Software and Hardware
United States
In 2005
By 2016
Two
Between 51 And 100
More Than 50M
Competition
Shut Down
Theranos

Consumer healthcare technology company

Health
Shut Down
$1.4B
Legal Challenges
Health
United States
In 2003
By 2018
One
Between 11 And 50
More Than 50M
Legal Challenges
Shut Down
PostRocket

Facebook page marketing platform

Analytics
Shut Down
$610K
Poor Product
Analytics
United States
In 2010
By 2013
Two
Between 1 And 10
Less Than 1M
Poor Product
Shut Down
Selltag

Platform for people to sell and buy items

e-Commerce
Shut Down
€325K
Failure To Pivot
e-Commerce
Spain
In 2014
By 2015
Four
Between 11 And 50
Less Than 1M
Failure To Pivot
Shut Down
Leap Transit

Provider of private transit and offers bus services

Transportation
Shut Down
$2.5M
Legal Challenges
Transportation
United States
In 2013
By 2015
One
Between 51 And 100
Between 1M 10M
Legal Challenges
Shut Down
Turntable.fm

Online interactive platform for DJs and listeners

Music
Shut Down
$7M
Bad Business Model
Music
United States
In 2011
By 2013
One
Between 1 And 10
Between 1M 10M
Bad Business Model
Shut Down
This is Brought to You by:
NerdPilots

NerdPilots

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

Acadium

Acadium

120 hours of digital marketing from a remote apprentice for only $299 (+ $50 off!).

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.