2023 was a challenging year for the startup world, with approximately 3,200 private venture-backed U.S. companies going out of business, collectively raising north of $27 billion. Let’s take a moment to remember some of the startups that didn’t make it through the year.
Key Takeaway
Startup failures in 2023 shed light on the challenges faced by companies in various industries, from finance to technology, and the importance of candidly sharing experiences to help others in the startup ecosystem.
Braid
Founded in 2019, Braid aimed to make shared wallets more mainstream among consumers. Despite raising $600 million, the San Francisco-based startup announced its shutdown in October. Founder Amanda Peyton’s candid blog post about the company’s demise shed light on the challenges faced by startups.
CloudNordic
CloudNordic, a Danish cloud host provider, fell victim to a destructive ransomware attack that led to its closure after close to two decades of operation.
Convoy
Despite raising more than $1 billion, the digital freight broker Convoy abruptly closed in October 2023, just eight months after a major funding round. Its assets were acquired by supply chain logistics platform Flexport.
Daylight
In May 2023, LGBTQ+ banking platform Daylight announced its shutdown after raising $20 million in funding. The closure highlighted the challenges faced by neobanks targeting specific demographics.
Fuzzy
The pet care telehealth startup Fuzzy closed abruptly, leaving customers and even some top executives puzzled about its sudden demise.
IRL
The event organizing social app IRL shut down in June 2023 after facing challenges with bot accounts and a lawsuit filed by its co-founders against their investors.
IronNet
Once-promising cybersecurity startup IronNet, founded by former NSA director Keith Alexander, struggled to stay afloat and ultimately filed for bankruptcy after a series of setbacks.
Mandolin
The concert livestreaming platform Mandolin, which thrived during the pandemic, announced its closure in April 2023 after three years of operation.
Veev
Real estate developer turned tech-enabled prefab homebuilder Veev, which reached unicorn status, faced an abrupt cancellation of a capital-raising initiative and underwent liquidation in November 2023.
ZestMoney
Indian fintech ZestMoney, backed by high-profile investors, including Goldman Sachs, resigned from the startup and ultimately shut down in December 2023.
Zume
Zume, known for its pizza robot startup, made a major pivot but ultimately liquidated its assets in early June 2023, despite raising $445 million.
