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6 Forces of Failure - Timing

Some of the key signs timing is the cause of failure includes: unforeseen changes in regulation, tax, tariffs, or the supply chain; economic and market shocks decreasing the need for the product; building a product that is too early since there isn’t enough infrastructure to support its use in the marketplace; dramatic and rapid technology shifts can surprise companies who don’t get ahead of them.

Bernie Madoff - Failure Museum

Bernie Madoff

In 2008, Bernie was arrested for turning his wealth management business into a $65 billion Ponzi scheme, which collapsed during the financial crisis.

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Beyond.com - Failure museum

Beyond.com

Beyond.com, a career network that connects job seekers with employers through career channels, was a casualty in the dot com bust.

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Bird - Failure Museum

Bird

In September 2023, Bird was delisted from the NYSE after being valued at $12M. After a 1-for-25 reverse stock split, Bird wasn’t able to achieve a $15M market cap for 30 consecutive days. Bird peaked at a $3B market cap in the public market

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Faraday Future - Failure Museum

Faraday Future

In 2021, Faraday Future went public on the NYSE via a SPAC valuing the company at $3.4B. The company has raised nearly $3B in equity and debt since its founding in 2016. As of the start of 2024, the company is at the risk

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Hopin - Failure Museum

Hopin

Virtual-events startup Hopin raised $1.16 billion and peaked at a $7.8 billion valuation in 2021 after only 2 years of being founded.  So many VCs, more than 60, were keen to invest in Hopin that none ended up with an influential stake.  Meanwhile, the

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iVillage - Failure Museum

iVillage

Launched in 1995 with an IPO in 1999 that valued the company at $2 billion, iVillage was a female-focused community since women were seen as late adopters of the internet. NBC Universal acquired the company, but missed the impending change of social media and

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Lime - Failure Museum

Lime

Over $5B in venture funding, of which $950M went to Lime, was invested into scooter startups. The decline in ridership is due to increased competition from cheaper traditional bikes, an increase in working from home, and complaints from city residents.

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