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Worst Startup Business Fails - YouTube
Channel: BE AMAZED
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many startups fail but some fail so
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spectacularly that they become forever
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enshrined and notoriety whether it's
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wild card want to be Rockstar CEOs false
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advertising or generally ridiculous
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ideas some startups are destined for an
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explosive demise strap a pillow to your
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hand and prepare to face bottom yourself
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and to oblivion as we explore some of
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the most hilariously tragic stories of
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failure and startup history number 10
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clincal before Apple pay and Google
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Wallet became the pervasive forces they
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are today a promising app seemed likely
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to take the newfound mobile payments
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market by storm clincal voted by Lukas
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Dublin in 2011 ones enjoyed investments
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from the likes of Richard Branson and
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raised 25 million in a matter of three
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months the extent of their confidence
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that clincal would eventually make paper
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money obsolete was demonstrated in a
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leaked photo showing Dublin and Branson
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burning piles of fake money but this
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confidence came along before the final
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product was ready and it would be three
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years before a restricted access version
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was released at college students to make
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matters worse the app fairly worked and
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other services like venmo and Apple pay
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were rapidly taking over the market all
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that I bled to nothing more than a rapid
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spinning spree in an effort to get
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things off the ground and employees
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began to quit a mess and protest of
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their unreliable CEO 2015 Sauk linkle's
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eventual demise mere months after the
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publicly available version finally
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launched it seems fate isn't a big fan
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of obnoxious overconfidence number nine
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secret secret was an anonymous message
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posting app launched by David Bidault in
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2013 people were able to use the app to
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share secrets with others in their area
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and unsurprisingly hateful messages
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remember spreading and bullying soon
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became prevalent although this was
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essentially the apps of regional purpose
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bit out claimed it had deviated from his
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original vision he and his co-founder
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used this excuse to pocket their
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investors Millions
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but how even bought a Ferrari while
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slowly furtively moving towards
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collapsing his company secret eventually
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shut down in 2015 and Bill Maher's of
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Google Ventures of former
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secret investor compared vidal and his
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partners actions to a bank heist to
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whatever extent this shutdown had been
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the long game plan for bid out he
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certainly enjoyed the Gold Line pockets
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of a master robber after the debacle but
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the true losers in the situation were
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his employees who were left with empty
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pockets while their CEO drove his new
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Ferrari off into the sunset number eight
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Lily robotics as 2015 was wrapping up
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sixty thousand people were excitedly
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awaiting the arrival of their special
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new drones you see earlier that year
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Lily robotics launched a crowdfunding
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campaign for a small drone that could
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automatically follow you around taking
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pictures and videos it was a great
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concept for everyone from travel
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enthusiasts to surfers and went viral
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instantly the attention netted Lily an
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astonishing 34 million in pre-sales
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but as big of a check as that was it was
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no match for the R&D cost it was men
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together
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you see when they launched the campaign
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their product wasn't finished in fact
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lead emails revealed that they'd
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actually use GoPro footage to promote
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the Lily drone and their offices were
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rated on fraud charges as a result with
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no actual product and all their money
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gone they were forced to offer refunds
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and went bankrupt at 2017 number seven
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the globe calm before Facebook and even
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MySpace the social network making waves
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was the globe calm their stock price
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jumped six hundred percent the day they
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debuted on the market in 1998 the
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biggest ever first-day price increase at
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the time but the globe CEO and founder
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Stephen pattern I like spending money as
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much as making it he was often spotted
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strutting about clubs and velvet pants
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with model companions pompously issuing
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remarks like got the girl got the money
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now I'm ready to live a disgusting
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frivolous life those words didn't age
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well economic ties shifted and when
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the.com bubble burst the globe.com saw
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their shares once worth $97 each plummet
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to less than 25 cents an investor's polo
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and both better not and his co-ceos
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stepped out from the company in 2000 the
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lesson don't fly too close to the Sun
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especially when you're wearing
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velvet pants number six power
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technologies according to CEO Dan Wagner
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the long-term goal of power technology
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was to become the biggest tech firm in
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living memory how they had to do was
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release a star product something
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everybody would want code scanner that's
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right along with a mobile app and
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point-of-sale terminals for retailers
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one of the company's debut products was
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a scanner known as the power tag which
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launched in 2014 the idea was that
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consumers could use it to buy products
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from advertisements that displayed a
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special tag if that sounds like a
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glorified QR scanner that's because it
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was attempting to take on companies like
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Apple for the number one tech spot with
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ideas of this kind was brave to say the
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least
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despite this they enjoyed a promising
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star raising a hundred and seventy five
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million in a year and a half at their
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peak in 2015 they were even valued at
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2.7 billion making them one of the most
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valuable startups at the time they were
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even praised by the prime minister of
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the UK at one point success would be
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short-lived though thanks to their
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failure to deliver on product promises
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excessive salaries for the higher-ups
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and a propensity for lavishness opulent
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parties with rivers of sparkling wine
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and strippers for entertainment we're
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gum in place which would have been less
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damaging if Powell was bringing in money
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it wasn't in fact his 2015 war on Public
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Interest diminished and they failed to
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pave many of their staff and contractors
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all the while their CEO was having a
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great time sending staff emails about
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dressing up as David Bowie damn those
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pants are tight eventually pala filed
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for bankruptcy and its main division
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including power tag were sold off there
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may have been plenty of booze and
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strippers but ultimately the company
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lost that game of palette head number
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five cue cat although the power tag
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seems like a uniquely dull idea it can't
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even claim originality the concept
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originally emerged during the tech boom
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of the late 1990s in a goofy invention
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called the cue cat the device plugged
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into your PC and could scan special
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barcodes on products and magazines
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taking you to the websites in turn it
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resembled a cat pairing seamlessly with
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your mouse because who doesn't want
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Nesta look like a barn and a leave of
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totally unfounded faith the company
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sends millions of these plastic felines
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that people across the u.s. for free
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this was of course an effort to create
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hype which was bolstered by wired and
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Businessweek throwing cue cat codes into
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their magazines during the launch the
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recipients however didn't feel like
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keeping the weird wired device by their
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side when they read magazines the lack
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of any discernible public interests led
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to them becoming a one hundred and
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eighty five million dollar failure for
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investors and a bizarre forgotten relic
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of the era number four I smell would you
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like to smell the Internet you know just
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get a good whiff of whatever you're
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looking at if you're currently running
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in confusion and disgust congratulations
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here a normal person with normal
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reactions to bad ideas but in the early
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2000s digi sensing lacked your rationals
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and civility seeking to distill the
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aromatic essences of enjoyable
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experiences like a walk on sunkissed
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beaches filled with beautiful people the
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company's founders came up with one of
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the most wonderfully weird ideas of all
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time seeking to create a type of
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smell-o-vision for the internet digi
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cents raised an impressive 20 million
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from investors in Asia the device
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connected to a computer and would issue
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a selection of cents related to what was
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on screen the aromas came from
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replaceable cartridges filled with tiny
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vials of Senet oil whether it be oranges
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sardines or a campfire the primary sense
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would be heated and vented out of the
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device which reportedly covered a huge
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range of smells
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would the interestingly named I smell
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did you sense managed to secure
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high-profile partnerships with Sony
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Microsoft and others who were eager to
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integrate smell into the digital sphere
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teaming and video games but it never
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occurred to them to ask customers if
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they buy it they found out the answer
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regardless with near zero demand and
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technical flaws that made the sense
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blend into edu number two the company
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was shut down in late 2001 but hey if
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you ever want to know what 20 million
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dollars of investor cash burning smells
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like just plug in a nice Medellin crank
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it up to 11 number 3 juice arrow when it
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launched in 2016 juice arrow was touted
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as the first cold-pressed juicing system
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you could have in here
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very own home it could connect a Wi-Fi
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because why not and utilize single
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serving packets of chopped vegetables
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and fruits which were acquired through a
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subscription founder Doug Evans promised
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his product would burn clean living and
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wellness to the people investors bought
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into the idea and the company nabbed
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investments of a hundred and twenty
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million dollars there was one minor
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problem though the machine cost as much
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as seven hundred dollars and that was
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before you got the packets but the true
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disaster came when people realized you
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get the same juice the machine would
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spin out if you squeeze the $1 bags by
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hand in light of this juice arrow
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promised refunds to customers and
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offered to release a two hundred dollar
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version but it was too late juice arrow
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closed its doors in 2017 becoming
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synonymous with all the worst aspects of
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Silicon Valley cons number two pixel on
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being an early video streaming platform
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in the late 90s you'd think that pixel
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on would be known for helping pioneer
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and now ubiquitous technology nope what
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they are known for however is throwing a
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party bra how sweet was this party you
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asked while the MGM Las Vegas bash in
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October of 99 their launch party
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included kiss Tony Bennett Sugar Ray
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Faith Hill Dixie Chicks Natalie Cole and
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the who in fact fixalot CEO Michael
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Finney actually paid the who to reunite
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just for that show as a matter of fact
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Fenny was and himself another thing
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picks on became known for but not for
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the kind of reasons a company hugely
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wants after all having a CEO that turns
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out to be a wanted white-collar criminal
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living and working under an alias isn't
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too high up on most quarterly agendas
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Michael's actual name was David Stanley
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and he'd been on the run from Virginia
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State Police since 1996 after defrauding
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parishioners at the church where his
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father preached they changed his name
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reappeared in California and started
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Pixel on with his business partner Paul
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ward oh and that famous party they were
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supposed to livestream it with pixel
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nonstick but error after error popped up
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and it became evident uh-oh
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that they're supposedly innovative
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technologies were well
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exaggerated angry board members rousted
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michael from his position by
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mid-november
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a few months afterwards police found him
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in Orange County and he turned himself
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in pixel on underwent a sudden violent
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decline in the following year and filed
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for bankruptcy in June 2000 but having
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had the shindig of the decade
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was it really a failure let me know what
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you think in the comments before I
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unveiled the greatest startup failure of
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all time there's one startup the
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deserves an honorable mention this
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particular startup known as new more
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wolf promised to answer a question every
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dog owner is had what if dogs could
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speak
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unfortunately the IndieGoGo backers were
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never given that answer as the company
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took their money and disappeared into
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radio silence in their IndieGoGo
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campaign no more wolf had promised to
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use innovative scientific principles to
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process doggie brainwaves into human
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language unsurprisingly the project
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proved on viable and after months of
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silence the startup eventually issued
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all backers a refund but there's more
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hilarious failed startups that failed to
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get enough funding this is Paul a
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smartphone charger that's built into an
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art sculpture at $400 a piece on the
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Kickstarter website it's a wonder why
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even two people put money forward to
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back it number one their nose in 2003
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when she was just 19 Elizabeth Holmes
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started their house after dropping out
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of Stanford she put together the mother
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of all sales pitches for a device that
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could test for almost any disease with
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just a few blood drops garnering instant
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confidence from top-tier investors their
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nose hit a 1 billion dollar value by
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2010 three years before the company
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would introduce itself publicly as the
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decade progressed the company reached a
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10 billion dollar valuation and it
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looked like their nose was on top of the
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world
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however in 2015 the Journal of the
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American Medical Associates published a
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piece criticizing their and host for
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overly secretive operations and failing
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to contribute its research to
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peer-reviewed medical publications
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later that year ex employees exposed the
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awful company management and exaggerated
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potential of their technology by
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exaggerated they meant their supposedly
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revolutionary technology fulfilled
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almost
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of their promises forcing their nose to
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use regular blood testing equipment
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their nose was charged with massive
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fraud by the SEC in 2018 and homes and
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former ther knows presidents Sonny
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Bhavani got hit with 11 counts of fraud
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themselves the company shut down in
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September of 2018 and one of the highest
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profile rises and falls in start-up
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history was over
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ouch which of these startup fails made
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you laugh the artist with the same
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opportunities what would you do
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differently or like pixel on would you
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just throw the biggest party ever with
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investors cash let me know in the
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comments section below thanks for
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watching
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