Start Up Failure 2022 | For the last few years, dreams are being sold to make the start up successful, I do not say that don’t take the dream but to fulfill that dream, a lot has to be done, a lot of home work, ground work and money involved. It happens that everyone knows that only execution works to make business successful, let us discuss those 5 start ups which failed in execution in 2022.
Start up Failure 2022- Kittyhawk Aero
The Kittyhawk aero was launched in 2010 by Sebastian Thrun, known as the father of self-driving.
The company was supported by Google Co-founder Larry Page to make the venture successful.
Kittyhawk started a venture to make personal electric self-driven air vehicles. If we talk about the present today, the self-driven car could not be launched till now and the company dreamed of launching an air vehicle.
The company had also prepared the Proto model, which after a single charge, could fly a distance of 180 km at a speed of 280km/hr, but many government approvals have not been received yet, due to which it could not launch.
Due to all this delay, the company finally decided to close the business after 10 years its launched.
lets discuss main three reasons of its failure.
Very Crazy Goal
Right now the electric car market has not been launched properly and every day research is being done on it and the electric plane has not been launched yet and it wanted to launch self driven air vehicle which would be pilot managed at ground level. This model is far from the present ground level reality.
Fight Within the company
Because the company could not do anything good for so many years, then there were arguments between the company CEO and Larry Page related to the company and its future, due to which all the employees of the company started leaving the job one by one and this project was stopped in the middle.
No Business Model
As we discussed above that Kitty Hawk is not able to do anything at ground level or with approval on white paper even in so many years, they were far away from revenue generation even in so many years.
Finally last month the company got officially closed.
Shopx started in 2015. The names of their founders are Amit Sharma and Apoorva.
The company was supported by Nandan Nilekani, co-founder of Infosys.
The business model of shopx was to make the product and discounts available to the buyers of the offline market at the same rates as online.
Shopx had also taken funding of $60m, yet they could not survive in today’s competition because the margins they getting were not enough for there survival and all the shops that were opened were closed one by one.
It is important to learn one thing from shopx that never start that business in which you have to close it for the reason that there are margins but it is not worth surviving.
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Fraazo entered the fresh fruits and vegetables market.
The names of the founders of the company are Vikas Sumit Ashish and Atul. The company has also raised $65 million in funding so far and in 2021 itself, the company raised $ 30 million.
Due to lots of competition and margin issues, the company has closed all its offices and warehouses except Mumbai.
And as per the sources 150 employees were also fired from the company.
One thing to learn from fraazo is that when you start a company in hot segment, you also raise funding by showing it on business projections ppt but if the next round is not raised then you cannot remain in the market.
Today the situation is that fraazo is ready to acquire in any big stable brand at any rate.
crejo.fun launched with an edtech business model
This is one of the many starts that started in the pandemic and stopped when life returned to normal.
This start up was launched by IIM Alumni and the also raised $3 million and it used to teach online art and craft, Bollywood dance, hip hop dance, chess, public speaking and yoga to children in pandemic.
It was fine in the pandemic but covid ended and life became normal and children started going to school, then their engagement went down and the business got shut down.
What we learned from crejo.fun is that a business needs a problem solver and not a time opportunity who collapse as soon as the situation is right.
Volt Bank launched as Neo Bank and Australia’s only online bank that closed due to lack of funding.
In today’s time it is understood that with only technology and services, you cannot keep the customer with you which happened in the case of Volt Bank. When Volt Bank also made deposits of $ 75 million and many more home loans customers too. but again it could not compete with old banks due to inflation and high bank rates and the bank closed due to non-raising of funding rounds.
He had to transfer his deposits and home loans to another bank so that the customer does not suffer.
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