10 of the most-funded startups to fail in 2017

Started by Sudhakar, Sep 15, 2017, 07:24 AM

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Sudhakar

10 of the most-funded startups to fail in 2017



Beepi

Shut down in February 2017

Raised $148.95 million in 5 Rounds from 35 Investors.

Beepi is a textbook case of a startup with a good idea -- a marketplace for people to sell and buy used cars, which would be vetted, processed and delivered to the new owner by Beepi, bypassing the costly overhead and commission structure of car dealerships. And there was some solid execution -- strong customer service was a big selling point. But ultimately the company was run badly.

It had been valued as high as $560 million in previous rounds of funding, after raising money from 35 investors, including Yuri Milner, Comerica, Redpoint, Foundation Capital, Sherpa



HomeHero

Shut down in February 2017

Raised $23.02 million in 3 Rounds from 7 Investors.

HomeHero shut down in February 2017 after its bid fell through to provide non-medical home care. CEO Kyle Hill blamed switching to W2 employees from 1099 contractors as the reason why the company lost its core identity, calling it an "inferior employment business" in a post on Medium.

The company had raised $23 million to connect home care workers with the families that need them. Along the way, it partnered with hospitals and launched a service that helps people monitor the health of their family members under the care of providers hired by HomeHero.



Auctionata

Shut down in February 2017

Raised $95.65 million in 6 Rounds from 15 Investors.

Auctionata shut down its operations after expected financing fell through. The company had previously raised more than $95 million since its founding in 2012 to broadcast online live auctions for fine art and collectables.

Live-streamed auctions have been a long-held ambition among many in the art world. Such a format has the potential to open the physical floor and all the bidding hype that comes with it to a much wider audience, and with that raising the bids for items on the block. But early attempts at live-streamed events failed to meet their estimates (so to speak...), complicated by slow broadband speeds, and much more.

Quixey

Shut down in May 2017

Raised $164.9 million in 4 Rounds.

Quixey launched as a mobile search company based out of Mountain View but later branched out to making a digital assistant for apps.

The company raised $164.9 million and, at one time, had a valuation north of $600 million. Yet, as the company was building its digital assistant, so was Apple and Google and startups like Viv, which Samsung would eventually acquire.

Once upon a time the company touted its ability to help users find content within their apps, eventually saying it has developed technology that can take you straight from the search results to personalized actions like showing nearby friends in Facebook or bringing up your own playlist in Spotify.

Yik Yak

Shut down in May 2017

Raised $73.5 million in 3 Rounds from 9 Investors.

The once-popular anonymous social network Yik Yak shut down in May of 2017. Apparently all the cyberbullies and unsavory content drove down the app experience for others. By the end of 2016, user downloads had declined 76 percent versus the same period in 2015, as TechCrunch reported then, and the company began laying off most of its employees.

The app faced problems that were predictable for any forum offering users anonymity and a means of chatting with one another. It was plagued by cyberbullies of every kind and even banned by some schools. But all the capital and advice in the world couldn't help it maintain its buzz.

According to Crunchbase, Yik Yak had raised $73.4 million in venture funding since it was founded in 2013, with a valuation approaching $400 million in 2014, its halcyon days

Source : https://www.techgig.com/tech-news/10-of-the-most-funded-startups-to-fail-in-2017-124725

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