21 December 2011

Startups That Failed In 2011

A year wherein the world economy played see-saw, we saw several startups emerging with great new ideas. However, the year also portrayed the failure of some good ideas due to varied reasons. Here are five such startups that failed in 2011.

Value Me

valueme, startup that failed in 2011Value Me was founded to let the customer know how much profit the companies they used made from them. However, the idea became a big flop and the firm was shut down. The customer problem is real and big enough so the team came up with some experts to calculate the value of their customers. They build a complex mathematical model that worked out what the customer worth to each company they used. But the mistake they did was they did not test the product with the customers, neither they started the test at the early stage of the development of the product. The service provided by Value Me became useless as they could not do the negotiating with the businesses.


Solyndra, startup that failed in 2011Solyndra was a solar panel maker. The company declared bankruptcy in September this year. The company used to manufacture round tubes with a rolled solar cell that were spaced out to capture more sunlight. Unfortunately, the company’s technology made sense only when the price of the materials were high. The situation became more worst when China’s state-run banks headed out billions of dollars in loans to home-grown solar companies.




Foome, startup that failed in 2011The site Foodme was launched in 2010 for brokering deals between dinners and restaurants. It was backed by IdeaLab. The company planned to expand to other areas from Pasadena, but shut its operations in June 2011. It was among many other sites that functioned like Groupon, but could not sustain the competition. The company shut its operations this year. 

Aptera Motors

Aptera Motors, startups that failed in 2011After failing to woo the investors, Aptera Motors shut down its business. The California-based startup was known for developing the space age, three-wheeled electric 2e, but failed to raise necessary funds to put its ultra-efficient electric vehicle into production. The company raised $150 million loan offer from the U.S. DoE, however it could not secure $ 80 million in private investments required to receive the DoE funding.

Goodmail Systems

Goodmail Systems, startup that failed in 2011Goodmail Systems is an email certification company that ceased its operations this year by sending an email to the customers announcing the closure. The attempt of the company to merge with Symantec for its survival could not happen, thus forcing the company to shut its operations.