3 High-Profile Failed Startups of 2013
Many of the smartest people around are opting for jobs at startups, choosing the excitement of making it big over the slow hum of success at a more established enterprise.
That can prove to be a dangerous decision however as research from Harvard Business School lecturer Shikhar Ghosh indicated in 2012 that as many as 75 percent of venture-backed companies never return cash to investors, with 30-40 percent of those liquidating assets where investors lose all of their money. And depending on what research you’re checking out, that number can soar up to 90 percent of startup ultimately hitting the dead pool. Sort of makes you want to run out and launch (or join) a startup, right?
They payoff for those dedicated to the success of a startup, and lucky enough to be in the small percentage of sites that eventually turn a profit, can be immense. The draw is simply too much for young, smart and driven Internet professionals – from developers to marketers and nearly everyone in between. The thing is, chances are good that the startup will fail – and you’ll be jumping from job to job – but you will not be the first.
Take a look at a few high-profile startups from years past – there are so many that our initial list of three just had to be expanded to include a few more, just to emphasize the scope of the startup meets dead pool scenario which is all too common. If there's even one lesson you should take away from this, it's not to join a photo sharing app startup or a startup doing anything with social.
Flud: Social News Reader
Color: Photo Sharing App
Wesabe: Personal Finance
Everpix: Photos Sharing
Tab: Loyalty App
Nirvanix: Cloud Storage
Fashism: Social Network
Lavabit: Secure Email Provider