Pitchbook is out with a fascinating look at the so-called 2017 “startup graveyard”. There are 11 companies on Pitchbook’s list. Let’s take a look.
The Startup Graveyard
On top of Pitchbook’s list of notable 2017 failures is Jawbone. Jawbone manufactured speakers and wearable technology, and at one point had a valuation of $1.5 billion, with $542 million in venture capital raised. It is now dead.
The next largest startup to be put to rest in 2017 is Quixey. At one point, Quixey was worth an amazing $600 million. That paper wealth has since evaporated, along with the $134 million in venture capital funding that was raised. Apparently it must be difficult competing with other application search engines.
The third largest startup to die last year is JuicEro. JuicEro was once worth $459 million, having grabbed the confidence of enough venture capitalists for $121 million in outside investments. Sadly, the San Francisco-based startup’s attempt to create a high-end juicer is no more, having succumbed to the pressure of negative press and complaints regarding the usefulness of its juicer product compared to the price.
The fourth largest startup to bite the dust in 2017 is Yik Yak. The location-based social networking site had at one point at whopping valuation of $400 million and had raised $75 million in venture capital funding. Unfortunately for Yik Yak’s investors, competing with Facebook and other social networking sites provide too daunting.
In fifth place is hello, a bedside sleep-tracking tool. The application met its demise in 2017 after having gained a valuation of $276 million and having raised $41 million from venture capital investors. What’s the lesson learned here? Getting people interested in sleep-tracking may not be as easy as some would suppose. May hello enjoy its long slumber.
In sixth place is PEARL, a manufacturer of automotive devices. At one point, PEARL had achieved a valuation of $197 million and had raised $50 million from venture capital investors. The Scotts Valley, California started is no more.
In seventh place is sprig, a food delivery and subscription service. At its final funding round, sprig was thought to be worth an amazing $169 million, and had raised $59 million from venture capital investors. Sadly for employees and investors of sprig, competing in the food delivery and subscription service business isn’t as easy as it seems.
In eighth place is TEFORIA, a tea infusion device. TEFORIA reached a peak valuation of $35 million before it died, taking the $17 million it raised from venture capital investors with it.
In ninth place is Qliance, a healthcare network of primary care clinics. Qliance is no more, having met its demise in 2017 with a peak valuation of $34 million and total venture capital raised of $37 million.
In tenth place is simple.tv, with a peak valuation before death of $30 million and total amount raised from venture capital investors of $12 million. Unfortunately for simple.tv’s investors and customers, profitability wasn’t achievable, and the TV recording tool has been laid to rest.
Lastly, in 11th place is imzy, with a peak valuation before death of $26 million and total venture capital funding raised of $11 million. Sadly, the Salt Lake City-based friendly social platform didn’t gain enough traction, and is now dead.
Source: Pitchbook
Conclusion
In an interesting look at Pitchbook’s 11 notable startup failures, the list of failures sums to about $3.8 billion in company valuations that disappeared into thin air. Losses on venture capital investors’ books amounted to about $1.2 billion.
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