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A look at why 5 tech startups failed

Mike Houghton | July 22, 2015
We've all read the statistics, 9 out of 10 tech startups fail. The last year was no different with many startups shining brightly for a brief moment only to be snuffed out by competing technologies or market conditions. Here’s your chance to learn from their mistakes as we look back at memorable tech startups and why they failed to gain traction.

Number 4: Moped

"The bottom line was that we didn't build something that enough people wanted," says Schuyler Deerman.

This sentiment rings true in the demise of many businesses. Schuyler Deerman, founder and CEO of Moped, thought that he would never see the day when he would have to close down Moped. He began building his dream with a vision of revolutionizing communications by making messaging and the infrastructure beneath it more Web-friendly. He knew he had something different, something unlike Twitter or Facebook because you could use Moped with any messaging device, while keeping all of your messages in sync across all of those devices. But this concept simply failed to build traction. In the end, Deerman realized that, "You learn a lot more from failure than success. There are many reasons for Moped not working out, but the bottom line was that we didn't build something that enough people wanted."

Number 5: Dinnr

"I had run out of ideas on how to turn things around, how to make people buy our product," says Michal Bohanes.

Number 5 on the list of failed tech startups: In September of 2012, Michal Bohanes and his cofounder Adil Mohammed, with funding secured, a solid business plan in place and market research locked in began Dinnr under this premise: "Cooking a quality meal at home from scratch takes too much time and effort in planning and executing. The average person's lack of skills and a limited product choice in inner-city supermarkets lead to a narrow repertoire of dishes. Online recipes are often not well-curated and leave room for doubt. Ingredients bought in bulk end up being wasted. "However, in January of 2014, Dinnr closed its doors for good.

 

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