(I’ve long been a fan of meditation, in any form. Recently I’ve been trying out meditation apps and this one is absolutely fantastic.)
Holy shitballs, this has been the week of post-mortems. I’m hoping this is going to be the new trend; promising startup closes its doors and spends the next few weeks publishing why and how and when and where. If we can find some realness amidst the bullshit, there will be much to learn for a guy like me. Below are some recent shutdown discussions, and a few random reactions from yours truly.
Everpix: I’ve written about the Everpix collapse twice here, but this is a very in depth analysis of the economics behind the financials released by the co-founders on GitHub. As the author states, mirroring an observation seen by others, it appears as if the company’s spending was “reckless”.
Prim: “You’re in this awkward position where you’re competing against your own supplier”, admitted one of the co-founders of the “Uber for dirty clothes” service that only lasted 7 months. This story is a tale of a key piece of biz operations (which falls under partnerships) being a weak link in the chain that simply didn’t make sense to fix.
Outbox: Can’t say I’m surprised here, but I was rooting for this true disruptor. My take: it didn’t solve a strong enough problem for consumers + lack of operational simplicity + governmental agencies standing in the way = failure.
DrawQuest: “We couldn’t quite crack the business side of things”. Similar to Everpix, we have a product with impressive downloads and engagement/retention numbers, but a lack of business acumen from its teams. I’m wondering how VCs let this happen. Is this not partially their faults?
Carwoo: I’m not familiar with the company and its demise was not as public as the others. I did find this prediction post from a couple years ago calling out a few reasons why the model may not be sustainable.