The latest casualty in the space is Reali, which announced that it has begun a shutdown and will be laying off most of its workforce on September 9. “Startups that are catering to homebuyers are struggling as interest rates and inflation have climbed and inventory shortages continue in many markets. Select VC investors: Akkadian Ventures, Signia Venture Partners, Zeev Ventures “Student loan lending company CommonBond quietly announced it will be ‘winding down’ its operations after its core businesses saw a hit during the pandemic.ĬommonBond cofounder and CEO David Klein said in a LinkedIn post that despite shifting to focus on residential solar panel loans, the impact of the student loan payment pause made it hard to continue the business.” Select VC investors: BMO Capital, Barclays Bank, Citibank, Goldman Sachs ‘But things have changed, and there’s a huge opportunity right now for Ford to give time - the most valuable commodity in modern life - back to millions of customers while they’re in their vehicles,’ said Farley.” Ford CEO Jim Farley acknowledged that the company anticipated being able to bring autonomous vehicle technology broadly to market by 2021. …That decision appears to have been fueled by Argo’s inability to attract new investors. “Ford said in its third-quarter earnings report released Wednesday that it made a strategic decision to shift its resources to developing advanced driver assistance systems, and not autonomous vehicle technology that can be applied to robotaxis… Select VC investors: Ford Autonomous Vehicles, Volkswagen Group …as consumers left their homes in 2021, shifting their food spending to dining out, and as economic conditions worsened in 2022, prompting many consumers to pare back their retail subscriptions, the company’s performance took a turn for the worse.” “Freshly is halting direct-to-consumer (D2C) meal deliveries as economic challenges rack the company and the broader meal delivery industry… Select VC investors: Highland Capital Partners, Insight Partners, Slow Ventures The rest of Mindstrong has terminated operations.” According to reporting by Digital Health Business & Technology, about 20 workers will have jobs at SonderMind. The deal includes Mindstrong’s tech and some of the company’s tech-related workforce. “Digital mental health company SonderMind is acquiring Mindstrong’s technology assets months after the fellow mental health firm laid off more than a hundred workers and shuttered its headquarters. Select VC investors: Optum Ventures, Bezos Expeditions, General Catalyst The two executives said the company had reduced its workforce over the course of 2022 while winding down and has been operating with a small staff.” ‘Unfortunately, we had funding challenges, just like I think the rest of the environment, particularly private companies, in the current macro environment,’ said Johnson. Goldfinch is now in an assignment for the benefit of creditors in Delaware court, an alternative to bankruptcy. “CEO Tony Johnson and Chief Financial and Operating Officer Kyle Kuvalanka told Fierce Biotech that the company is closing up shop after failing to secure additional financing. Select VC investors: Third Rock Ventures, Gilead Sciences, BlackRock “Ironically, the social app IRL‘s users do not exist in real life.Īn internal investigation by IRL’s board of directors found that 95% of the app’s reported 20 million users were ‘automated or from bots,’ The Information first reported.” Select VC investors: Founders Fund, SoftBank, Kleiner Perkins Caufield & Byers It ceased trading in May, according to a person with knowledge of the matter, per the report.” It then changed its business model and tried to become a sustainable-packaging manufacturer.Īccording to The Information, Zume was ‘insolvent,’ and Sherwood Partners, a restructuring firm, had been instructed to sell the company’s assets. The company was founded in 2015 and aimed to automate the pizza-making process, but suffered a series of technological difficulties. “Zume, the robot pizza delivery startup that raised close to $500 million, has shut down, The Information reported. Select VC investors: SoftBank, SignalFire, SGH Capital Startup Failures: Total funding of $100M+ Zume The 164 biggest product failures of all time.If you are not already a CB Insights client, sign up for a free trial to dive deeper into startup funding history, investor data, and much more.įor more research into startup failures and corporate flops, check out: We then highlight discussions about the reasons for failure based on press reports, founder post-mortems, and company statements. We’ve broken down the companies that failed by the amount of funding they received, starting with those that failed that raised over $100M. But we’ve also uncovered some more extraordinary causes of failure, including:
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