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Australia Failures

7 Failed Australian Startups & the Reasons Behind

Here's a list of 7 failed startups from Australia, analyses on their shutdowns, and interviews with their founders.

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Here’s a list of 7 failed Australian startups.

Some of them were big, with huge teams and funding rounds.

Others were smaller, ran by the co-founders and with no funding.

But all of them shut down.

And each for a specific cause of failure.


7 Failed Australian Startups

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99dresses

99dresses

99dresses was a fashion app that offered trades of second-hand designer dresses between users. It operated for a year but had to shut it down in 2014.

Details of the startup:

  • Founders:

    Nikki Durkin

  • Country:

    Australia

  • Industry:

    e-Commerce

  • Started in:

    2010

  • Closed in:

    2014

  • Nº of employees:

    1-10

  • Funding Amount:

    < $1M

  • Specific cause of failure:

    Multiple Reasons

You can read more about their failure here.

Onepagetrip

Onepagetrip

Onepagetrip was a travel itinerary sharing community. Not having a plan to make money from the beginning was a stupid rookie mistake.

Details of the startup:

  • Founder:

    Ana Santos

  • Country:

    Australia

  • Industry:

    Travel

  • Started in:

    2014

  • Closed in:

    2015

  • Funding Amount:

    $0

  • Specific cause of failure:

    Bad Business Model

You can read more about their failure here.

The Nerd Cave

The Nerd Cave

The Nerd Cave was a new kind of retail model, a truly safe space for gamers of all kinds to go and enjoy their passion and hobby. They were doing it great, earning $16,000 AUD/month. But when they moved to a new location, they saw a big loss of income, which provoked the closure of their doors.

Details of the startup:

  • Founder:

    David Desi

  • Country:

    Australia

  • Industry:

    Entertainment

  • Started in:

    2013

  • Closed in:

    2017

  • Funding Amount:

    < $100K

  • Specific cause of failure:

    Lack of Funds

You can read more about their failure here.

Zor Technology

Zor Technology

When he was 16 years old, Mat wanted to help his family improve the standards of living. So, he started a business which imported consumer electronics and re-sold them at almost x10 the original price. Through affiliates, he was able to put his business on the track to 6 figures in the first year. However, one day he received a call from a law firm which forced him to shut down the startup.

Details of the startup:

  • Founder:

    Mathew Carpenter

  • Country:

    Australia

  • Industry:

    Software & Hardware

  • Started in:

    2008

  • Closed in:

    2009

  • Funding Amount:

    $0

  • Specific cause of failure:

    Legal Challenges

You can read more about their failure here.

Roamz

Roamz

Roamz was a location-based app that allowed users to find and review nearby restaurants, pubs, events, and places. The app was download +200k times before it was shut down, but the team never figured out how to monetize it.

Details of the startup:

  • Valuation:

    B (

    )

  • Country:

    Australia

  • City:

    Surry Hills

  • Started in:

    2011

  • Founders:

    Jonathan Barouch

  • Industries:

    Location Based Services, Machine Learning, Photography, Private Social Networking, Social Media, Software, Travel

  • Number of employees:

    10-50

  • Funding Amount:

    $3.5M

  • Number of funding rounds:

    1

  • Number of investors:

here

Guvera

Guvera

Guvera offered a system that enabled free music downloads through engagement advertising. The amount they raised: +$130M. The revenue they generated: Around $0.

Details of the startup:

  • Valuation:

    B (

    )

  • Country:

    Australia

  • City:

    Gold Coast

  • Started in:

    2008

  • Founders:

    Claes Loberg

  • Industries:

    Advertising, Music, Music Streaming

  • Number of employees:

    100-250

  • Funding Amount:

    $130.4M

  • Number of funding rounds:

    5

  • Number of investors:

    1

here

Shoes of Prey

Shoes of Prey

Shoes of Prey was a shoe e-Commerce for women that allowed customers to customize the items. After 10 years of running, the company announced its bankruptcy. According to founders, the startup failed due to the high fixed costs of offering customizable products and their inability to crack mass-market adoption.

Details of the startup:

  • Valuation:

    B (

    )

  • Country:

    Australia

  • City:

    Sydney

  • Started in:

    2009

  • Founders:

    Jodie Fox, Michael Fox, Mike Knapp

  • Industries:

    E-Commerce, Fashion, Shoes, Women's

  • Number of employees:

    10-50

  • Funding Amount:

    $25.9M

  • Number of funding rounds:

    6

  • Number of investors:

    19

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