Big Businesses take shape from worst start-up failure stories. There are ample of big business tycoons who saw great downfalls in their business in the Tech world.
In the tech world new start-ups keep coming up and some of them flourish while the other turns to be a flop.’
Few of them even get a place among the biggest tech companies. Start-ups in the tech world are heavily invested. But a lot of them suffered epic failures.
Let us look at the Top five Start-up failure in the tech world.
Start-up Failure one: Theranos
Elizabeth Holmes laid the foundation of the company Theranos which got great popularity for providing cheap and quick blood testing devices.
Theranos claimed to earn as high as $500 million. Its worth was claimed as high as $9 billion. The company got defame after the allegation posed that it falsified for the revenues of Theranos.
The SEC accused Elizabeth Holmes and Ramesh Balwani for providing the fake amount of revenue earned and worth of Theranos. Theranos is under criminal trials with the SEC and trying for some settlements.
Start-up Failure two: Jawbone
Jawbone launched wearable devices and hyped greatly in the market claiming to overcome big brands like Fitbit.
The company successfully got a valuation of $3.2 billion. It raised revenue as of $900 million. Despite this fact, it was only able to gather 3% of the wearable market.
Thus the company collapsed and started liquidating by the end of 2017.
Start-up Failure three: Pets.com
In 1998 Pets.com emerged as an eCommerce site which sold pets. Pets.com had big companies as investors namely Hummer Winblad Venture Partners and Amazon.
It was able to gather revenue as high as $110 million. Because of the big investor companies, Pets.com did not suffer much high loss.
Pets.com was very active in commercialising and advertising its site. It spent a lot of money on these things. As a result, the overspending on these things became a reason for the company’s loss.
It also opened an IPO which garnered good revenue as $82.5 million but it couldn’t compensate the loss and thus Pets.com began liquidating at the beginning of 2000.
Start-up Failure four: Better Place
Shai Agassi laid the foundation of the company Better Place in the year 2007. Better Place is a start-up for electric cars.
It was launched with a vision to take over Tesla- A Big name in the Automobile sector.
The Company had big investors viz. General Electric, Vantage Point Capital Partners etc. With whose help it gathered revenue of $900 million.
The better place had an amazing idea of Batter swapping technique for electric cars but the company could not balance to meet its expenses. Thus it collapsed with time.
Start-up Failure five: Solyndra
Solyndra tech innovation start-up was founded in the year 2005. Its mission was inclined towards Clean energy sector.
Solyndra earned $1.2 billion from fundraising and investors. In 2011 the prices of a key component Silicon fell.
As a result, the competitors of Solyndra lowered their prices for the services. However, Solyndra couldn’t do it as it used Polysilicon. Thus the rivals overtook Solyndra.