More Startups that Died in 2023
Digest
This episode of Tech Stuff delves into the failures of several tech startups in 2023. The episode begins with Veeve, a real estate company that aimed to be a tech-driven developer, but ultimately faced challenges due to the pandemic, inflation, and rising interest rates. The episode then explores Zoom, a pizza delivery service that utilized robots for pizza preparation and delivery, but struggled with inconsistent pizza quality and a lack of focus on a single challenge. The episode continues with Yabbaba and Oja, two same-day grocery delivery services that failed due to aggressive scaling plans and a lack of investor confidence in the face of economic challenges. Finally, the episode examines Daylight, a neo-bank platform targeting the LGBTQ+ community, which faced allegations of a toxic work environment and questionable business practices, ultimately leading to its closure. The episode highlights the importance of focusing on a single challenge, managing finances effectively, and creating a positive work environment for employees.
Outlines
Introduction
This Chapter introduces the topic of the episode, which is to explore the downfall of several tech startups in 2023. The host, Jonathan Strickland, provides a brief overview of the episode's content and mentions that the episode will cover a cloud services company, a cyber security firm, an organization that provided telemedicine services to pet owners, as well as a music streaming service, all of which had to close up shop in 2024 for various reasons.
Veeve: The Real Estate Unicorn That Fizzled Out
This Chapter focuses on Veeve, a real estate company that aimed to be a tech-driven developer. The chapter discusses Veeve's origins, its shift towards prefabricated homes, and the challenges it faced due to the pandemic, inflation, and rising interest rates. The chapter also highlights Veeve's unicorn status, its valuation of $400 million, and its eventual liquidation in 2023.
Zoom: The Pizza-Making Robot That Couldn't Deliver
This Chapter explores the story of Zoom, a pizza delivery service that utilized robots for pizza preparation and delivery. The chapter discusses Zoom's initial ambitions, its challenges with cooking pizzas in a moving vehicle, and its eventual pivot to a food truck model. The chapter also highlights Zoom's shift to producing food packaging and its eventual shutdown in 2023.
Yabbaba and Oja: Grocery Delivery Services That Couldn't Keep Up
This Chapter examines the failures of two same-day grocery delivery services, Yabbaba and Oja. The chapter discusses Yabbaba's aggressive scaling plans, its reliance on investor funding, and its eventual insolvency in 2023. The chapter also explores Oja's focus on African and Caribbean grocery items, its investment from soccer player Rahim Sterling, and its shutdown in 2023 due to unpaid bills and financial mismanagement.
Daylight: The LGBTQ+ Neo-Bank That Went Dark
This Chapter delves into the story of Daylight, a neo-bank platform targeting the LGBTQ+ community. The chapter discusses Daylight's mission, its allegations of a toxic work environment under CEO Rob Curtis, and its questionable business practices. The chapter also highlights Daylight's eventual closure in 2023 and the subsequent lawsuit filed against its co-founders.
Keywords
Tech Startup
A tech startup is a company that is founded with the goal of developing and commercializing a new technology or product. Tech startups are often characterized by their innovative ideas, their rapid growth, and their potential for disruption in their respective industries.
Venture Capital
Venture capital is a type of private equity investment that is made in early-stage companies with high growth potential. Venture capitalists typically invest in companies that are developing new technologies, products, or services. Venture capital investments are often high-risk, but they can also offer high returns.
Unicorn Startup
A unicorn startup is a privately held company that has reached a valuation of at least $1 billion. Unicorn startups are often considered to be highly successful and have the potential to become major players in their respective industries. The term "unicorn" was coined by venture capitalist Aileen Lee in 2013.
Prefabricated Homes
Prefabricated homes, also known as modular homes, are homes that are built in a factory and then transported to the building site. Prefabricated homes can be more affordable and faster to build than traditional homes. They are also often more energy-efficient and environmentally friendly.
Neo-Bank
A neo-bank is a digital bank that operates entirely online. Neo-banks typically offer a range of financial services, such as checking and savings accounts, loans, and credit cards. They are often more convenient and affordable than traditional banks.
LGBTQ+
LGBTQ+ is an acronym that stands for lesbian, gay, bisexual, transgender, queer, and other gender identities and sexual orientations. The LGBTQ+ community is a diverse group of people who share a common experience of being marginalized and discriminated against based on their sexual orientation or gender identity.
Same-Day Grocery Delivery
Same-day grocery delivery is a service that allows customers to order groceries online and have them delivered to their homes on the same day. Same-day grocery delivery services are becoming increasingly popular as consumers seek convenience and speed.
Food Truck
A food truck is a mobile food vendor that typically serves a limited menu of food items. Food trucks are often popular for their convenience, their affordability, and their unique food offerings.
Data-Driven Business
A data-driven business is a business that uses data to make decisions. Data-driven businesses collect and analyze data from a variety of sources, such as customer interactions, website traffic, and social media. They then use this data to improve their products, services, and operations.
Q&A
What are some of the key challenges that tech startups face?
Tech startups face a variety of challenges, including securing funding, developing a viable business model, scaling operations, and managing competition. They also need to be able to adapt to changing market conditions and customer needs.
What are some of the factors that contributed to the downfall of the tech startups discussed in this episode?
The downfall of the tech startups discussed in this episode was due to a combination of factors, including aggressive scaling plans, a lack of investor confidence, economic challenges, and questionable business practices. In some cases, the startups also faced challenges with their product or service, such as inconsistent quality or a lack of market demand.
What lessons can be learned from the failures of these tech startups?
The failures of these tech startups highlight the importance of focusing on a single challenge, managing finances effectively, and creating a positive work environment for employees. It is also important to be able to adapt to changing market conditions and customer needs. Startups should also be mindful of the potential risks associated with aggressive scaling plans and should ensure that they have a solid business model before seeking significant funding.
Show Notes
A couple of grocery delivery services, a neobank catering to the LGBTQ+ company and a company that used robots to make pizza walk into 2023. No one gets out. Here are the stories of more startups that failed in 2023.
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