[HN Gopher] Biggest Y Combinator Failed Startups
       ___________________________________________________________________
        
       Biggest Y Combinator Failed Startups
        
       Author : nicocerdeira
       Score  : 183 points
       Date   : 2020-10-09 18:58 UTC (4 hours ago)
        
 (HTM) web link (www.failory.com)
 (TXT) w3m dump (www.failory.com)
        
       | moron4hire wrote:
       | That's not why Meta failed. Meta failed because their product was
       | garbage.
        
         | TwoBit wrote:
         | Has any AR product not been garbage?
        
           | cyrux004 wrote:
           | but none of the CEOs say that you have to switch from using
           | monitors at the company to AR glasses
        
           | moron4hire wrote:
           | The HoloLens 1 does what it claims to do. It is
           | uncomfortable, the FOV is narrow, but it's usable and there
           | aren't any big, negative surprises. You can use it and say,
           | "yeah, I get it, I can see where this is going".
           | 
           | The Magic Leap doesn't do what they claimed it would do. But
           | it does do what the HoloLens 1 does, _slightly_ better in
           | some areas, _slightly_ worse in others.
           | 
           | The Meta2 was fundamentally broken. Nothing on it worked
           | correctly. Everything on it was a hack job.
        
         | cyrux004 wrote:
         | I will have to agree. The tarrif war accelerated their demise;
         | but there product was far from ready. Infact the CEO of Meta
         | said at some point said that employees will be required to
         | shift from monitors to using Meta and they werent able to reach
         | that goal because their tech (or AR in general) wasnt there
        
       | PradeetPatel wrote:
       | "The Trump administration's trade war with China resulted in a
       | failed funding round led by a Chinese investor..."
       | 
       | Is there another president that's so callous about small medium
       | sized businesses?
        
       | Mascobot wrote:
       | This list seems to be a biased list. I thought the list was first
       | in descending order (funding), but it's not. Some super early
       | stage startups were picked for some reason in the bottom section?
       | 
       | To clarify: by numbers, the vast majority of startups fail, and
       | that's part of trying new things until one of them works great. I
       | know multiple founder friends that had 1-3 *big failures before
       | they built a great company after that.
        
       | knes wrote:
       | How can you make a list of failed yc companies and not mention
       | homejoy?
       | 
       | $66m raised, bad operations, bas unit economics, lawsuits and an
       | abrupt shutdown.
       | 
       | All of that after being the calley darling for so long.
        
         | tikwon34 wrote:
         | Regardless of who stole the data, does it have to do fact that
         | they are chinese? Ever wonder if something cultural going on
         | here?
        
         | pmiller2 wrote:
         | It's clearly not a very complete list. I wish they had
         | presented a more complete list, filterable by funding round,
         | amount raised, year founded, year shut down, and maybe one or 2
         | other things.
        
           | nicocerdeira wrote:
           | Maybe something like this (https://www.failory.com/cemetery),
           | but only for YC startups?
        
         | kapitalx wrote:
         | I used HomeJoy once, a student showed up and said "Wow your
         | house looks pretty clean already, I'm not sure what I would
         | even do". My apartment was tidy, but it wasn't clean (at least
         | by my standards)
        
         | nicocerdeira wrote:
         | Will add it!
        
         | Sindrome wrote:
         | Maybe because the CEO is now a YC exec
        
         | WoahNoun wrote:
         | After stealing HomeJoy's customer DB for another start-up, she
         | is now a YC partner...
         | 
         | Move fast and break things?
        
           | sillysaurusx wrote:
           | Ok, the situation seems to be: brother and sister cofounded
           | startup; startup failed; brother acquired failed startup's
           | assets via legal proceedings.
           | 
           | Which part of this is illegal, or -- I'll meet you halfway --
           | unethical? It seems like a straightforward business
           | transaction.
           | 
           | If I'm missing something nefarious, I'd like to educate
           | myself to avoid it. What do you see as the problem?
           | 
           | (Apologies if my facts are incorrect; this is info from
           | elsewhere in the thread, so maybe you know something that
           | hasn't been said yet.)
        
             | avery42 wrote:
             | I'm not familiar with the story, but this is what I found:
             | https://www.businessinsider.com/aaron-cheung-brings-
             | homejoy-...
             | 
             | > The weird tale begins with an email that John Salzarulo
             | received Tuesday afternoon. A Los Angeles based user,
             | Salzarulo received an email from Cheung that "$20 cleaning
             | is back!" thanks to its local partner.
             | 
             | > "I wanted to reach out personally today to invite you to
             | join a private house cleaning trial with our Los Angeles
             | partner, Fly Maids," Cheung wrote, not disclosing his
             | connection to the company.
             | 
             | > When Salzarulo clicked the email link, the Fly Maids'
             | site logged him into his Homejoy account, which still had
             | his credit card number and notes about where to find the
             | trash can.
             | 
             | I don't know if it's illegal, but I definitely think it's
             | unethical.
        
               | sillysaurusx wrote:
               | Hmmm.
               | 
               | Thank you for finding that! This opens up a fascinating
               | discussion about ethics.
               | 
               | So, to start from a purely capitalistic viewpoint, it
               | seems like you are free to use your property that you own
               | however you wish, subject to the law. That raises
               | questions like: in this situation, is it legal for the CC
               | numbers to be stored in that way? From the customer's
               | POV, they authorized HomeJoy to store their CC info, not
               | Fly Maids. But that leads to the question of: those CC
               | numbers are stored somewhere (or the authorization token)
               | and those assets were a part of the sale.
               | 
               | I don't know. It's a massive advantage to have your
               | customers in a position of "just click this button to
               | give us money" rather than pestering for CC details.
               | 
               | It's a little odd, to be sure, but... it seems like
               | unless it's illegal, it might not be unethical to take
               | advantage of that opportunity. It depends how you feel
               | about capitalism, I suppose. _If_ there was nothing
               | illegal here, which seems perhaps likely, then it seems
               | valid.
               | 
               | From another point of view, it sounds like he was just
               | trying very hard to succeed, and in some sense Fly Maids
               | was the continuation of his previous endeavor. So I sort
               | of understand why it might have felt natural to reach out
               | to the customers you were already doing business with.
               | 
               | But again, all of this has two important assumptions: (a)
               | he legally owned all assets, and (b) used those assets to
               | the letter of the law. If those are mistaken then someone
               | with more experience should definitely call it out.
               | 
               | "When we contacted customers, we didn't tell them we were
               | Homejoy relaunching because we wanted to gauge reception
               | to our new model without the influence of Homejoy's
               | brand," Cheung allegedly wrote. "As a result, we scared
               | many customers, who expected the worst had happened to
               | their data. We should have told customers upfront who we
               | were, what we were testing, and used original content."
               | 
               | I dunno. This seems pretty reasonable, honestly. It kind
               | of alarms me that you see this as clearly unethical,
               | because I could see myself making this same mistake, in a
               | different life. If you feel like explaining more of the
               | reasoning regarding the ethics, I'd personally find it
               | interesting to listen.
        
               | mijamo wrote:
               | Not everything is an asset. You do not legally own the
               | credit card numbers. At most you own the right to use
               | them to fulfill a contract. Just like if I share my
               | screen with an IT support company that does not give them
               | the right to suddenly transfer my screen to an
               | advertising company, except if I have been explicitly
               | told that would happen (and no, terms and conditions are
               | not enough for that, because it is way out of the
               | expected behavior of the contract, just like having terms
               | that make the user pay a billion dollar on each visit
               | would not make it work either).
        
           | mattkrisiloff wrote:
           | I used to work alongside Adora at YC and she works super hard
           | for the startups she is working with and is very helpful --
           | totally justified for her to be there.
        
             | tikwon34 wrote:
             | so you said it and we should buy it? Why? Because you had
             | successful experience? What about people whose data is
             | stolen?
        
           | swyx wrote:
           | i dont know Adora and i'm sure she has useful things to teach
           | people. however i really wonder if this clouds every
           | interaction with people going through YC. it's kind of the
           | huge elephant in the room.
        
           | Judgmentality wrote:
           | I guess people can brand themselves as "successful" after
           | what is by all objective standards a spectacular failure.
           | 
           | I have no idea how impressive Adora is and I cannot speak to
           | her qualifications, but HomeJoy should be a textbook example
           | of an SV failure.
        
             | [deleted]
        
             | cvhashim wrote:
             | This comment a little sexist. Is it just me?
        
               | Judgmentality wrote:
               | How is my comment sexist?
        
               | IncRnd wrote:
               | It's just you.
        
           | twmahna wrote:
           | The person who was accused of "stealing customer data" was
           | the other co-founder - not Adora (CEO & now YC partner).
           | 
           | If you actually look into the details of the matter, what
           | happened was that the co-founder acquired the failed company
           | as it was put through a bankruptcy process.
           | 
           | People who weren't privy to the process thought it was
           | stealing when it really wasn't different from any other
           | acquisition.
        
             | TimSchumann wrote:
             | > The person who was accused of "stealing customer data"
             | was the co-founder, not the CEO & now YC partner.
             | 
             | So, her brother?
        
             | WoahNoun wrote:
             | My comment doesn't use the word CEO so I'm not sure what
             | point you are making.
        
               | [deleted]
        
             | jeromegv wrote:
             | How can you say all that and not mention the fact that they
             | are sibling? You make it sound like 2 separate person that
             | have no relationship to each other. It looks like you have
             | something to hide by just ignoring that big fact.
             | https://en.wikipedia.org/wiki/Homejoy
        
               | tt433 wrote:
               | Don't you think it's possible that the person you're
               | responding to has a different understanding of what a
               | sibling relationship means? I think it's a little rude to
               | inject your feelings about what a sibling relationship
               | must be and resort to innuendo.
        
             | kevinskii wrote:
             | You're right that it may not have been "stealing" in the
             | strict legal sense, but it was unethical and deceptive.
             | More details here:
             | 
             | https://news.ycombinator.com/item?id=10466888
        
           | hnracer wrote:
           | In the hedge fund world there is a mindset that if you're
           | going to fail, you must fail BIG (without breaking the law).
           | Then you get a sort of undeserved glamor associated with the
           | failure that can actually lead to new opportunities. For
           | example, the case of Brian Hunter, if he failed small he
           | would've been long forgotten.
        
           | nxmnxm99 wrote:
           | She railroaded our YC interview for having a similar model
           | (albeit in a different vertical) simply because she failed,
           | so naturally we would also fail. Aaron Harris, another failed
           | entrepreneur turned YC partner, has routinely done the same
           | I've heard.
           | 
           | We're now 2 years later pushing $2M ARR profitably and about
           | to raise our Series A. YC not taking 7% of our company was
           | the best thing that ever happened to us.
           | 
           | YCombinator is nothing like what it used to be. The majority
           | of the partners are useless as venture partners.
        
             | nodesocket wrote:
             | While seemingly harsh criticism, I think you may be right.
             | YC of the old (PG, Jessica, etc) was much more selective
             | and smaller inner circle. However, even when PG was at the
             | helm he said they passed on many insanely lucrative
             | opportunities.
             | 
             | Picking startups is hard, like picking stocks. You aren't
             | gonna pick every winner, but frankly 2M in ARR after two
             | years is not exactly a home-run for YC. So, perhaps them
             | passing was the right call for YC.
             | 
             | Congrats though, sounds like you've built something useful
             | and you can be proud of that. Plus, taking VC money ain't
             | all it's cracked up to be. If you can bootstrap to get to a
             | level that pay's yourself $200-300k a year, that's a win.
        
               | jkarneges wrote:
               | > frankly 2M in ARR after two years is not exactly a
               | home-run for YC
               | 
               | It's been awhile since I looked at this deeply, but I
               | thought the path of a good startup is to raise a seed
               | with an 18 month runway, grow to 1m ARR, and then raise a
               | series A. Assuming that's true, growing to 2m ARR in 2
               | years is in the ballpark.
        
               | crazydoggers wrote:
               | $2M ARR is such a small part of the story though. You
               | really have to look at things like cost of acquisition,
               | churn, gross profit, along with understanding the market
               | itself. Certain markets can be easy to create quick ARR
               | either through enormous CAC spends and/or large amounts
               | of churn, all of which means poor long term growth
               | potential.
        
             | cvhashim wrote:
             | That's just what happens when worthwhile initiatives get
             | too big and bloated. I'm sure there was a sweet spot YC was
             | in years ago but I guess it's no longer that.
        
             | hnracer wrote:
             | There's a phenomenon I've noticed in job interviews where
             | the interviewer will in a sense torture the interviewee if
             | it's a domain that the interviewer has expertise in, asking
             | needlessly complex questions as if to grandstand and show
             | off. It becomes theatrical and I can only attribute that to
             | some level of sadism- or narcissism-like traits. I am not
             | impugning Adora's motives here just commenting on my own
             | experience.
        
               | dx87 wrote:
               | I had an interviewer do that once, and it was clearly
               | just to show that he knew more obscure technical info
               | that I did, even though it was at a much lower level than
               | was required for the job. The other interviewer even
               | sighed and rolled their eyes at him, so I'm guessing it
               | isn't the first time he'd done it.
        
             | TimSchumann wrote:
             | I understand there's probably a desire to stay at least
             | pseudo-anonymous, given that your account was created 42
             | minutes ago as of this posting, but I'd like to hear more
             | of this story. Feel free to post here or contact me
             | directly via the info in my profile.
        
       | quartz wrote:
       | Interesting that two of these (three if you count Unicorn Rides
       | which is a note within Boosted) are hardware companies and both
       | were a result of the recent tariff war with China.
       | 
       | I've always known startups are hard but it seems that hardware
       | startups, even when they appear to be on a rocketship trajectory,
       | are nigh impossible.
        
         | ghaff wrote:
         | Hardware is often a lot more capital intensive, harder to get
         | to an MVP, and, these days, often requires software _in
         | addition to_ hardware.
        
           | lnsru wrote:
           | And that's the reasons why all the capital sources avoid
           | hardware startups as hard as they can. It's like betting for
           | a 10x slower horse than the rest.
        
       | amichal wrote:
       | A really good idea. Not at all the same social/economic climate
       | as it was at the time but I couldn't help remembering
       | https://en.wikipedia.org/wiki/Fucked_Company which really lent
       | some perspective to industry when it was so hard to understand
       | where the hell all these dotcoms came from and why not all of us
       | were getting the millions.
        
       | nimacainn wrote:
       | Missing from that list is Grin Scooters / Grow Mobility
       | (e-scooters for LATAM) which is probably one of the biggest
       | failures out of all YC companies in terms of investment money
       | raised.
       | 
       | They raised $70M as Grin and then $150M after the merger with
       | Yellow. I think at Demo Day they were trying to raise at a $100M
       | cap with just an idea / pre-launch. After raising an insane
       | amount of money in a matter of moths, they expanded extremely
       | quickly to dozens of cities in several countries in LATAM while
       | having bad unit economics ("land-grab"). There are likely
       | interesting learning lessons there.
        
       | jyu wrote:
       | No list of YC failures is complete without mentioning Loopt.
        
       | dyeje wrote:
       | I remember seeing that Buttermilk company arguing with people on
       | their Facebook ads.
        
       | tikwon34 wrote:
       | I have this question on my mind and if someone could explain this
       | sincerely I would be very grateful.
       | 
       | Time after time, YC startups seem to engage in practices which
       | are unethical or dark or downright scammy. Be it Homejoy, uBiome,
       | AirBnB (updating consent without asking). They seem to employ
       | aggresive marketing tactics. They work under assumption that "law
       | does not apply to us". Although this is true for ultra rich
       | people, why regular seed funded do it? Is growth focus this much
       | necessary to the to do outright fraud or in engage in shady
       | tactics? They are willing to kill other people's business and
       | livelihood for their growth. I would call this "preying tactics"
       | 
       | Paul is very successful person and I read about him a lot. Why
       | companies going through YC do this? Or is this just Business-as-
       | usual (BAU) in Americas? Kill or be killed?
       | 
       | Thanks for responding!
        
       | goatcode wrote:
       | I wonder who the founders were for Plurchase. It's kind of weird
       | that they're the only one without this info listed.
        
       | pmiller2 wrote:
       | This is my first time hearing about uBiome. Oh well, at least I
       | have one of their t-shirts from some startup trade show thingie I
       | went to. It's pretty cool looking.
        
       | LeCow wrote:
       | Does Theranos count?
       | 
       | I'd say they achieved even less than most start-ups.
        
         | cortesoft wrote:
         | No, they don't count, because they were not a Y Combinator
         | startup.
        
         | qppo wrote:
         | Theranos wasn't a YC company
        
         | troygoode wrote:
         | Why would Theranos count? They were not YC.
        
       | lifeisstillgood wrote:
       | To all those who failed (apart from the weird sounding fraud with
       | the FBI), well done for actually climbing into the arena and
       | fighting. Better luck next time.
       | 
       | To the rest of us. Schadenfreude is its own reward.
        
       | the-dude wrote:
       | Which reminds me : only 13 days to when the interview invitations
       | will be sent.
        
       | gkoberger wrote:
       | I don't get the last section, where you just name 4-5 small
       | "failed" startups. For most of them, you don't even have any real
       | insights!
       | 
       | Why pick on them, for no reason? They didn't do anything
       | unethical, and most didn't seem to even raise a Series A.
       | 
       | You have no clue why they failed; you just speculate... and you
       | don't just name the companies, you call out random founders by
       | name. These people put themselves out there and worked hard, and
       | now they're going to get a Google Alert saying they're in a blog
       | post called "Biggest Y Combinator Failed Startups."
       | 
       | Most YC companies don't work out. In my batch (5 years ago),
       | about 80% are out of business now. That's okay! That's just how
       | it works. I'm all for talking about failures, but it's weird you
       | just pick on a few small random YC startups.
        
         | sillysaurusx wrote:
         | I had the same reaction, but then I was delighted they included
         | these smaller examples. It was especially interesting to hear
         | about the desktop search startup from the summer founder's
         | program.
         | 
         | There's an inclination to view this sort of thing as
         | adversarial / picking on the founders, especially because there
         | are a lot of haters for successful people in general. But this
         | piece seemed clinical, not critical.
        
         | nicocerdeira wrote:
         | We aimed to cover different sizes of business, industries,
         | raising funds, etc. as our audience is quite broad.
        
           | gkoberger wrote:
           | Why call it "Biggest Y Combinator Failed Startups," and just
           | randomly pick on some very small companies that weren't even
           | contacted for their side of the story?
           | 
           | Like, what could anyone learn about from what you wrote
           | about, for example, the vegan milk startup? You just picked
           | on a random small company, and then said generic stuff about
           | "economies of scale".
           | 
           | I love hearing about failures (and am happy to talk about my
           | own!), but there's a difference between exploring what went
           | wrong, and "punching down". Now when you Google their names,
           | "Biggest Y Combinator Failed Startups" will be the result.
           | Unfair.
        
         | whymauri wrote:
         | I think Failory is meant to be an educational tool for
         | founders. I suppose there's lessons to be learned at any scale.
        
       | deft wrote:
       | I like how stealing is called growth-hacking now!
        
       | cbisnett wrote:
       | This article says Atrium ran out of money, but I feel like Justin
       | Kan's blog post said they gave tens of millions back to investors
       | when they shut down.
        
         | ryanSrich wrote:
         | Yeah, I commented that the list is incomplete and at times
         | straight up wrong. This is one example. Atrium absolutely did
         | not run out of money.
        
       | pvorb wrote:
       | Anyone else thought that the list of failed startups starts with
       | NerdPilots? That ad is a little misplaced.
        
         | tpurves wrote:
         | I didn't realize it wasn't first on yhe list until I read your
         | post! I though to myself, of course, why would YC fund a
         | contract development shop, such a wrong model for VC no wonder
         | they must have failed.
        
           | atlasunshrugged wrote:
           | They did fund Gigster which is what the business model was in
           | essence
        
           | hluska wrote:
           | Ha!! This makes my day - I thought they were on the list of
           | failed startups too, thought the way fact same thing as you
           | and didn't even realize they weren't a YC company until I got
           | here. :)
           | 
           | Thanks friend - I needed that chuckle today!
        
             | bilbopotter wrote:
             | "Sponsored by" didn't do it for you
        
         | rdw wrote:
         | Yeah, the ads were pretty intrusive in this article. Still got
         | us all to engage, though! Some content marketer is happy today.
        
         | pvarangot wrote:
         | Yup, I was "oh they failed fast!" and then realized it was an
         | ad.
        
       | troughway wrote:
       | With the eye-raping callout (dark background -> white background
       | switch) half-way through the article on wanting an email address
       | (three callouts within the article in total), I'm shocked you
       | didn't finish the job and put a big fucking modal popup smack dab
       | in the middle as I was scrolling and ask once more.
        
         | stevewodil wrote:
         | Personally I find the call to actions rather tasteful on that
         | site
        
         | ganoushoreilly wrote:
         | You seem bitter, which startup was yours?
        
       | ozten wrote:
       | It looks like TheMelt is down to 7 grilled cheese stores.
       | 
       | https://www.themelt.com/locations
        
         | phendrenad2 wrote:
         | Ah yes The Melt Index. You can track silicon valley startup
         | activity by how many tech workers are grabbing a quick grilled
         | cheese sandwich while their code compiles.
        
         | bsder wrote:
         | To be fair, Covid is a nuclear bomb dropped on the entire
         | restaurant sector.
         | 
         | However:
         | 
         | 1) Putting a grilled cheese sandwich restaurant in
         | _ferociously_ expensive real estate known for upscale, health-
         | conscious consumers can 't be smart (Irvine Spectrum Center?--
         | LOL)
         | 
         | 2) The food just wasn't that good. Sorry. They deserve to go
         | out of business.
        
         | Natsu wrote:
         | Why do they need 7 locations? They should downsize to one
         | location with an army of toaster-drones.
         | 
         | Just make some specially-designed plates with a QR code target
         | printed on them and the drones won't even need to land, they
         | can just drop the food right on your plate after toasting the
         | sandwich into a more aerodynamic shape...
        
         | johncoogan wrote:
         | TheMelt wasn't in Y Combinator, but it is an interesting story.
        
           | ryanSrich wrote:
           | What's the story?
        
             | marcins wrote:
             | I found this article: https://www.wired.com/story/how-the-
             | trendiest-grilled-cheese...
        
         | traek wrote:
         | Did they go through YC? I can't find anything online about
         | that, but I had no clue they raised $10M from Sequoia.
         | Surprising.
        
       | AndrewKemendo wrote:
       | "The Trump administration's trade war with China resulted in a
       | failed funding round led by a Chinese investor, which put the
       | company in dire straits financially. "
       | 
       | Trump is a convenient scapegoat here but in no way related to why
       | they failed. Meta was headed to guardianship not long after the
       | Meta2 was released.
       | 
       | Overall Meta was just a poor experience with basically zero
       | traction. They changed their hardware approach from the Meta1 to
       | the 2 and it created a completely different experience while on
       | the side the Hololens was blowing everyone out of the water and
       | they weren't in any position to compete. Add to that the complete
       | collapse of Magic Leap and the bubble burst for AR this round.
       | 
       | Reinforcing again - Augmented Reality is probably the hardest
       | market/technology to succeed or even just stay alive in.
        
         | rdw wrote:
         | Many startups are on their deathbed before finally succeeding.
         | A famous example is Fred Smith, FedEx founder, gambling the
         | company's last $5k, in order to come up with $24k for a
         | deadline[1]. Had the cards come up differently, or a political
         | wind had made gambling illegal, FedEx would have failed, and
         | someone would have been able to say that logistics was "a hard
         | market to succeed or even just stay alive in", and even be
         | correct! The casino (or lack thereof) would have been a
         | "convenient scapegoat". But it doesn't change the fact that
         | having the chance to have these kinds of lucky turnarounds seem
         | to play a pivotal role in a lot of success stories.
         | 
         | [1] https://www.businessinsider.com/fedex-saved-from-
         | bankruptcy-...
        
       | 7twelve wrote:
       | I have this question on my mind and if someone could explain this
       | sincerely I would be very grateful.
       | 
       | Time after time, YC startups seem to engage in practices which
       | are unethical or dark or downright scammy. Be it Homejoy, uBiome,
       | or many others. They seem to employ aggresive marketing tactics.
       | They work under assumption that "law does not apply to us".
       | Although this is true for ultra rich people, why regular seed
       | funded do it? Is growth focus this much necessary to the to do
       | outright fraud or in engage in shady tactics? They are willing to
       | kill other people's business and livelihood for their growth. I
       | would call this "preying tactics"
       | 
       | Paul is very successful person and I read about him a lot. Why
       | companies going through YC do this? Or is this just Business-as-
       | usual (BAU) in Americas? Kill or be killed?
       | 
       | Thanks for responding!
        
       | twmahna wrote:
       | Worth noting that the proximate cause of death is often times
       | largely uninformative as to why the startup actually failed.
       | 
       | Most failed startups fit into the following timeline: was burning
       | more money than it was making => failed at raising more money =>
       | did a round of layoffs / cost cuts to get economics under control
       | => couldn't right the ship and shut down / did a fire sale or
       | acquihire
       | 
       | But, the above timeline doesn't teach you much about why the
       | company really failed. The real answer almost always involves a
       | multitude of contributing factors, and requires intimate
       | knowledge of the startup's business.
       | 
       | For the most part, the only reliable source for this type of
       | information is one of the founders, board members, or (sometimes
       | but not always) c-level execs. And, even then, they have to be
       | willing to be vulnerable (which is very rare).
       | 
       | If I could give some advice to Failory, it would be to think
       | about how you can incentivize founders to share their stories. As
       | it stands, they have little to gain and potentially a lot to lose
       | (e.g. being labeled one of YC's "biggest failures")
        
         | dcolkitt wrote:
         | > But, the above timeline doesn't teach you much about why the
         | company really failed.
         | 
         | I for one would like to see this table with the founders'
         | average email response times.
         | 
         | https://news.ycombinator.com/item?id=19375483
        
         | wtvanhest wrote:
         | Probably be much more informative to talk to non-c-level
         | employees who do not have an incentive to modify the story.
        
         | new_realist wrote:
         | Most startups fail. I don't think most founders have the acumen
         | to really know the full story of their own failure.
        
           | gibolt wrote:
           | There is a difference between knowing the difference and
           | admitting it.
           | 
           | When you run a business from start to scale, you likely know
           | the main failure point, and it is probably a few simple
           | variables.
        
         | sjtindell wrote:
         | As a relative outsider, I would hope being labeled as one of
         | the biggest failures would be a mark of experience among a set
         | that claims or claimed to uphold the "fail fast" mentality and
         | treats failure like the learning experience it is.
        
           | ZephyrBlu wrote:
           | "fail fast" refers to experiments, not the whole damn
           | company.
        
             | majormajor wrote:
             | A new company is almost by definition an experiment.
        
       | ericlevine wrote:
       | Quick note: you got the pronoun wrong for the founder of The
       | Buttermilk Company when referencing her Medium post.
        
       | ryanSrich wrote:
       | This list feels wrong and incomplete. The startups at the end are
       | completely random. If you included the full list of failed YC
       | startups regardless of funding it would be hundreds deep. I don't
       | understand what I just read.
        
       | Alupis wrote:
       | How's Y Combinator doing these days?
       | 
       | Many smaller base hits, a few home runs, or striking out? I don't
       | follow the VC world much.
        
       | pbiggar wrote:
       | Missing Airware - $112M raised.
       | 
       | (https://techcrunch.com/2018/09/14/airware-shuts-down/)
        
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