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Like its US-based counterparts, Rent the Runway and Stitch Fix, YCloset operated using a subscription model and allowed its users to rent branded apparel. In doing so, the company announced plans to end support for its sales and online channels by August 15. YCloset - a fashion rental startup - shut down in early July, despite having raised $70M in total disclosed funding since its founding in 2015. Title: Alibaba-backed fashion rental app YCloset shuts down after five years Read on for the post-mortems of 8 startups that shut down since June 2021. While these challenges may have been manageable on their own, in many cases, they proved to be fatal when compounded with pandemic-induced pressures. Many startups, rather than seeing an influx of fresh capital, shut down altogether due to a number of factors, such as increased competition ( KupiVIP), a lack of market traction ( Abundant Robotics), and flawed business models ( Yelo). However, this activity was just one side of the private equity coin.

Investment to startups skyrocketed in Q2’21, as the quarter saw 390 $100M+ mega-rounds and 2,893 global IPO and M&A exits - representing a 109% increase year-over-year. Startup Failure Post-Mortems 2021 Third Update (9/28/21) Original 50 Startup Failure Post-Mortems ().Startup Failure Post-Mortems 2014 First Update ().Startup Failure Post-Mortems 2014 Second Update ().Startup Failure Post-Mortems 2015 First Update ().Startup Failure Post-Mortems 2015 Second Update ().Startup Failure Post-Mortems 2016 First Update ().Startup Failure Post-Mortems 2016 Second Update ().

Startup Failure Post-Mortems 2016 Third Update (11/8/16).

Startup Failure Post-Mortems 2017 First Update (2/10/17).

Startup Failure Post-Mortems 2017 Second Update (6/9/17).

Startup Failure Post-Mortems 2017 Third Update (10/31/17).

Startup Failure Post-Mortems 2018 First Update (4/17/18).

Startup Failure Post-Mortems 2018 Second Update (8/13/18).

Startup Failure Post-Mortems 2018 Third Update (11/14/18).

Startup Failure Post-Mortems 2019 First Update (2/28/19).

Startup Failure Post-Mortems 2019 Second Update (6/19/19).

Startup Failure Post-Mortems 2019 Third Update (10/16/19).

Startup Failure Post-Mortems 2020 First Update (1/21/20).

Startup Failure Post-Mortems 2020 Second Update (8/18/20).

Startup Failure Post-Mortems 2021 First Update (2/1/21).

Startup Failure Post-Mortems 2021 Second Update (6/16/21).

Startup Failure Post-Mortems 2021 Third Update (9/28/21).

So why do so many startups flame out? The real reasons can be hard to uncover, but the obituaries written by founders, investors, and journalists offer plenty of clues.īelow is a time-staggered compilation of startup post-mortems for some of the most notable failures in the CB Insights database.Īfter reading the 386 goodbye letters and investigative takedowns below, check out our rundown for the top 12 reasons that startups shutter.