What are some examples of good start-ups that have failed?
Ideas are the building block of any start-ups. However, they are not the only block. Along with that, there are many factors that are needed to be considered while starting a company or business. Thus, sometimes, just having a good idea is not enough. According to a survey, 90% of India’s start-ups fail within five years of their inception. The survey adds that the lack of pioneering innovation is the major reason for the failure of Indian start-ups.
The absence of scalable ideas makes 9 out of 10 Indian start-ups fail, despite the best intentions of founders and investors.
One way to avoid failure is through making oneself aware of the environment. This can only be possible when you have quality contacts. LINQQ enables you contact with many successful professionals and entrepreneurs who can help you in boosting your start-up.
Here are some examples of good start-ups that have failed:
1) Just Buy Live :-
Just Buy Live connected retailers directly with brands to buy goods across numerous categories including food, drinks, smartphones, fashion, personal care, stationery, and more. The start-up raised a funding of $100 million Series B funding in August 2017 from a Dubai-based investment firm.
Why it failed
A few reports claim that the start-up may have shut down due to an unsalable business model and negative cash flow. However, the company’s co-founder said that it has temporarily been shut down and shall resume its operation after raising fresh funding.
2) Shotang :-
It is a B2B online marketplace for retailers, distributors, and manufacturers, where they could connect and discover, transact and manage their business online. It dealt mainly in mobiles and apparel. They earned through commissions paid by distributors for each transaction.
Why it failed
During its peak time, Shotang had a $40 million market valuation. As a citation by an anonymous person states that the last funding was raised primarily to pay off creditors, employees, and partners. It is a possibility that the business was forced to scale down because of the fierce competition from platforms like Flipkart, Amazon, and Paytm Mall.
3) PortDesk :-
PortDesk was a provider of e-procurement software solution for logistics management for operations including cash management, accounting, layout, ports DA estimate and voyage, and contract management.
Why it failed
The reason for the shutdown of PortDesk is still unknown. Recently, it even received a seed funding from a Singapore-based maritime services company, Alphard Maritime Group. The founder of the start-up was not reachable for comments. Adding to the list, there are a plethora of companies that started with a genuine and very good idea. However, the market conditions and other external and internal factors forced them to shut down.