Not every startup is going to be the next Facebook, Airbnb or Uber. In fact, the odds are stacked against entrepreneurs and, chances are, their ventures will fail. And Boston companies aren't immune to these odds.
Over the past year, we've seen our share of wins, like Everbridge's and Acacia Communications' IPOs. But we've also witnessed droves of startups bow out of business, by way of shuttering or acquisition. We got to thinking: What better way to honor the fallen than cram all of their former employees into an Irish pub and bond?
On Tuesday, Oct. 18, we'll be hosting our first ever BostInno Departed, a celebration of startup failure, success and everything that lies between, at Clarke's at Faneuil Hall. We'll drink to endings and beginnings, and eat appetizers (a special thanks to Mylestoned and Dave Balter here). And at 7:00, we'll read out the names of the BostInno Departed (all featured below) and display swag from startups that are no longer with us. RSVP here.
The Shuttered:
Chef Nightly
This food-delivery app folded in March, at which time co-founder and CEO Michael Sheeley announced the decision in blog post saying it failed to develop a product innovative enough to compete in a now-crowded market. The announcement came about six months after the startup raised $1.5 million in seed funding from investors including DraftKings co-founder and CEO Jason Robins, Kayak and Lola co-founder Paul English, Streetwise Media co-founder Chase Garbarino, Accomplice, Fullstack Ventures and Bridge Boys. Sheeley just told us in an email:
I think the only development since that blog post is that most of the team came back together after the company shut down, we added a few new key members with skills we might have been missing before, and are now working quietly on a new project in a completely new space and focus. More to come on that maybe early next year.
Lineage Labs (Bevy)
Last October, Lineage Labs launched Bevy, a $299 piece of hardware that consolidated people's photos in one place. Flash forward to July: The venture announced it "has discontinued normal operations due to insufficient funding and will no longer be shipping Bevys," with technical support for its product ending August 31. The startup had received $4 million in venture capital from Converge Venture Partners, The Kraft Group and Blade, Paul English's startup accelerator.
Next Step Living
Next Step Living, a Boston energy efficiency services firm that had raised $50 million in capital, announced this March that it was closing its doors. Its website read, "As of Friday 3/18, Next Step Living is discontinuing all operations. All future commitments made on behalf of Next Step Living will be made by Western Technology Investment. Please contact them if needed."
BetaBoston
Technically, the tech and business news site BetaBoston was already a part of the Boston Globe. But in March, a memo from Globe Editor Brian McGrory revealed the publication's decision to eliminate BetaBoston as a standalone site and bring it behind its paywall. Now, the name has been scrubbed from the majority of the Globe's site and readers in search of BetaBoston are redirected to the Business & Tech section.
HelloShopper
HelloShopper (formerly known as Scratch) was an app connecting users with live personal shoppers who would give them gift ideas for free. In the summer of 2015, the venture raised a $3.6 million seed round led by Bessemer Venture Partners, with participation from NextView Ventures, Red Swan Ventures and Aspiration Growth. It rebranded to HelloShopper this past February, only to start "winding down" in June, according to its founder and CEO Matt Zisow.
Dunwello
The professional reviews site, which was like if Yelp and LinkedIn had a lovechild, announced it was shuttering in February. Dunwello Founder Matt Lauzon first wrote an ominous Medium post titled "Failure." Shortly after, he told us, "Dunwello is winding down. We considered a variety of options and ultimately concluded this was the right path for everyone involved." The venture had raised close to $2 million in funding from investors like NextView Ventures, VegasTechFund, G20 Ventures and Converge Venture Partners. Lauzon recently wrote to us in an email:
I'm grateful that I had the opportunity to work with some amazing people and will forever be disappointed that I became at the center of what is now one of three cases in federal court involving sexual abuse at the hands of former police officers. The feeling of letting down my co-founder, team, investors and users is something I will carry forever. I miss Boston very much and I'm happy to see various people who were involved in Dunwello living happy, productive lives.
Luvo
Luvo (formerly known as Flashnotes) went quiet suddenly this past spring. In fact, all of us Boston publications missed that it was winding down. The company's website is now nothing but a blank page, and in May, EdSurge News reported, "Cengage Learning’s Chief Product Officer, Jim Donohue, who led the publisher’s investment in the startup, confirmed to EdSurge that it has officially wound down." The venture had raised more than $14 million in funding.
The Merged and Acquired:
Attend
Event Farm, a DC-based event marketing startup, announced it was acquiring Attend for an undisclosed amount in September.
Demandware
Salesforce said it was buying Demandware, an e-commerce software company based in Burlington, Mass., for $2.8 billion this June.
EMC
Dell acquired Hopkinton-based EMC for $67 million this September, almost 12 months after Dell announced its intentions to buy the software company.
HeyWire
Salesforce announced in September that it would acquire HeyWire, a Cambridge-based messaging startup that lets businesses receive texts from their customers through 1-800 numbers and other business lines. The terms of the acquisition weren't disclosed.
Trumpit
In August, Wayfair shared it would be making its third acquisition by buying Trumpit, a Snapchat-like social media startup. The financial terms have not been disclosed.
Embedly
Medium, a $100-million venture-backed publishing platform based in San Francisco, announced in August it would acquire Embedly, an API platform that lets users embed media into a website. The terms of the acquisition have not been disclosed.
Confer
This July, Carbon Black said it would acquire Confer, another cybersecurity company based in Southborough, Mass. The terms of the acquisition weren't disclosed.
Imprivata
The Lexington-based healthcare IT security company announced in July it would leave the New York Stock Exchange and be acquired by Thoma Bravo, a private equity firm, for $544 million.
CloudLock
Cisco shared in June that it would acquire CloudLock, a Waltham cybersecurity firm, for $293 million in cash and assumed equity awards.
Fiksu
The venture-backed adtech company was acquired by ClickDealer in June and subsequently split into four separate companies. Terms of the acquisition weren't disclosed.
Gemvara
Online jewelry startup Gemvara announced in April that it was acquired by Richline Group, a Berkshire Hathaway ($BRK.A) subsidiary that specializes in jewelry marketing, manufacturing and distribution. The financial terms of the deal weren't disclosed.
Constant Contact
Burlington, Mass.-based Endurance International (EIGI) announced it closed its acquisition of Waltham, Mass.-based Constant Contact, for approximately $1.1 billion in February.
Runkeeper
Runkeeper, the fitness tracking app for runners and bikers, announced in February that it was being sold to Asics, a Japanese athletic shoes company, for $85 million.
Barstool Sports
In January, Barstool Sports announced that it was sold to The Chernin Group, a New York investment group, for an undisclosed fee.
NaviNet
NaviNet, a digital health startup, was acquired by California-based NantHealth in January. The financial terms of the deal were not disclosed.
Talko
Last December, Microsoft announced it was acquiring Talko, a Mass.-based mobile messaging startup. The deal's terms were not disclosed.
Gazelle
Gazelle, an e-commerce company buying and selling used smartphones, sold to Outerwall for $18 million last November.
Logentries
Rapid7 acquired Logentries, a fellow Boston startup, for $68 million last October, with a chunk of the cash from its July IPO.
Viewfinity
Last October, CyberArk announced it was acquiring Waltham-based Viewfinity for $30.5 million.
Retroficiency
Retroficiency was acquired by Ecova, an energy management company based in Washington, last October. The financial terms of the acquisition were not disclosed.
Fancred
Sports fan app Fancred laid off all of its employees at the end of 2015. In July, Football Nation, another Boston-based company, bought Fancred for an undisclosed amount.
The Fashion Project
The retail venture merged with Union & Fifth, a similar platform where customers can continue to donate and shop for good, in April after laying off its employees the previous summer.
ThriveHive
ThriveHive, a Cambridge-based SMB marketing software company, was acquired by Propel Marketing for $11.8 million, all-cash, in March.
Featured image is public domain. This story was updated to include The Fashion Project, ThriveHive and Luvo.
