In an almost interesting fashion, Pitchbook, the private equity data provider, is out with a look at the 2018 startup graveyard. The tally reviews companies that died in the year of 2018.
Before looking at the list, which companies would you guess are on the list? Does a certain blood-testing company come to mind? Perhaps one with a female founder who was accused of fraud, along with her ex-boyfriend? What other companies would you guess went down in flames in 2018? Here’s the list.
The Top Death of 2018
The following figure has the list of the top company to meet an untimely demise in 2018. Which company was the worst death of 2018? Without question, the answer is Theranos. The blood-testing company saw $9 billion in value disappear out of thin air, as regulatory scrutiny brought down Elizabeth Holmes’ path to billionaire. Instead of running a darling of the venture capital industry, Miss Holmes is now dealing with the aftermath of alleged fraud.
Along with the $9 billion in valuation went $810 million in venture capital raised funding. May Theranos’ goals of advanced drug testing live in peace, and potentially be achieved some day. That day, though, is not 2018.
Source: Pitchbook
The Other Members of the Death List
What other companies show up on Pitchbook’s 2018 startup graveyard list? As depicted in the following tombstone, eleven other companies show up on the list.
The list includes Rethink Robotics. The company made robots designed to work alongside humans. The demand, or perhaps more so the competition, led to the downfall of the technology company. With its demise went a whopping $291 million in value and $150 million in venture capital raised. Too bad this Boston-based company failed to make it to see the Red Sox play in the World Series.
Another massive company that breathed its last breath in 2018 was Shyp. The San Francisco-based company provided on-demand shipping services, a long-held goal for many internet companies. Before Shyp died, the company had at once reached a valuation of $275 million, with $62 million in venture capital raised.
The fourth member of the top five companies to die in 2018 is Apprenda. The New York-based company provided software to developers. With its death went $90 million in paper wealth and $56 million venture capital funding.
The last member of the top five deaths in 2018 is Airwave. The drone analytics provider failed to generate enough revenue for its services, and with it disappeared $59 million in value and $104 million in venture capital raised.
The other companies on Pitchbook’s list include Primary Data, Caresync, Bluesmart, Lantern, Raden, Fieldbook, and Alta.
Source: Pitchbook
How Much Money Went Down the Tube?
With the list of 12 companies that went down the tube now established, one might ask – How much money was actually lost with the deaths of these companies? The answer: $1.4 billion in venture capital funding. That’s a massive amount, although not nearly enough to discourage venture capital investors from looking for the next big thing.
Conclusion
In a fascinating look at the startup companies that died in 2018, on top of the list of most prominent deaths is Theranos. The company once reached a valuation of $9 billion before going belly-up in early 2018. Other top companies to end up in the 2018 trash bin include Rethink Robotics, Shyp, Apprenda, and Airware. May they rest in peace this Halloween.
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