11 startup postmortems in this category.
Better Place aimed to build a global network of EV battery-swapping stations. It raised $850 million before running out of cash, having sold fewer than 1,500 vehicles.
Lesson: Your business model shouldn't depend on competitors agreeing to cooperate. Infrastructure-heavy businesses need guaranteed demand before you build.
Sidecar invented peer-to-peer ride-sharing before Uber and Lyft. Despite being first to market with many features, it lost the war and shut down in 2015.
Lesson: In winner-take-all markets, being first and innovative isn't enough.
Ofo was once the world's largest bike-sharing platform with 200M users. It collapsed in 2018, leaving millions unable to get their deposits back.
Lesson: Hardware unit economics must work from day one.
Flybe was Europe's largest regional airline, connecting smaller UK and European cities. It collapsed twice—in 2020 and again in 2023—under debt and pandemic pressure.
Lesson: Capital-intensive industries with thin margins don't survive external shocks without massive cash reserves.
Hyperloop One raised $450M to build Elon Musk's vision of pods traveling at 700mph through vacuum tubes. It shut down in 2023 having built only a test track.
Lesson: Some infrastructure problems require government-scale funding. Not every moonshot is VC-fundable.
Arrivo was founded by an ousted Hyperloop One co-founder to build a different kind of high-speed transport. It raised millions, built nothing, and vanished.
Lesson: Press releases are not progress. Build something real before announcing partnerships.
Hailo was Europe's answer to Uber—an app for hailing licensed taxis. It raised $100M, expanded globally, and died when Uber's subsidies won.
Lesson: Price dominates for most consumers. Ethical practices are important but don't win against massive subsidies.
Kazam built EV charging infrastructure in India. Despite the EV boom, it failed due to regulatory challenges and the slow pace of electric adoption.
Lesson: Infrastructure plays need patient capital and government support. Venture timelines often don't match.
WhereIsMyTransport mapped informal public transit in African cities. Despite important mission, it couldn't build a sustainable business model from transit data.
Lesson: VC funding requires VC-compatible business models. Impact missions need different funding structures.
Trucker Path built a popular app for truck drivers to find parking, fuel, and weigh stations. Its B2C monetization failed; the company survived only by pivoting to B2B freight matching.
Lesson: Users who love your free product won't necessarily pay for it. The viable business may be on the B2B side.
RideScout aggregated all transportation options in one app. It was acquired by Daimler for its technology, and the consumer app was immediately shut down.
Lesson: A financial exit can be a product failure. Users invest in your product too—don't forget them.