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I have written about a lot of successful startups in the past. I could not help but write about these dotcom failures when I realized just 13 startups had raised over $2.5 billion in funding. Starting a business has its downturns, and these startups have been recorded as some of the greatest failures in dotcom history.They raised millions of funds, operated for some time and failed. They may have done all the research needed, investors believed in the business models and they probably made lots of press coverages but they still failed to stand the test of time. So what exactly can you do wrong to cause your downfall. Could it be the economy or your own management practices?
- Webvan (founded in 1999, raised $830MM, bankrupt in 2001)
- eToys.com (raised $220mm prior to 1999, IPO raised $166mm – $386MM total, market capitalization of $11b in 1999, bankrupt in March 2001)
- Zapmail – Federal Express wrote off $320 million on this commercial failure that was a precursor to web-based document exchange
- AllAdvantage -Raised nearly $200 Million in venture capital and grew to more than 10 million members
- Asera – Churned through at least $176.2 million
- DeNovis – Sent all 110 employees home when it closed its doors. $125 million in venture capital
- Spikesource – Raise $68 million before quietly peddling the assets to Black Duck in fall 2010
- Zaplet ($100 million on widgets in email)
- DEN-Raised $60 million, quickly crashed then two of the three founders were arrested for coercing underage male employees into sex.
- Living.com-Launched July 1999, raised $68M. Dead in Aug 2000.
- Boo.com (founded 1998, raised and spent $135MM by May 2000)
- Pets.com (founded 1998, raised $82.5MM in IPO in February 2000, ceased operations in November 2000)
- Flooz.com- Raised $35 million from investors , went bankrupt in August 2001