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    Notable startups that failed in 2011

    The year 2011 was momentous for several startup companies that raised huge sums by going public, such as Zynga, LinkedIn, and Groupon. But many other notable startups -- some of them well-funded -- had a much worse year and closed down.

    From energy star to political hot potato

    Solar-panel maker Solyndra may be the highest profile startup failure of the year. The company filed for bankruptcy in September after receiving $535 million in loan guarantees from the government. The shutdown became an embarrassment for the Obama administration, as the president made a public appearance there and the company was the first renewable-energy company to receive a loan under the federal stimulus program.

    3-wheeled, 2-person electric car by Aptera Motors.Another widely reported casualty was Aptera Motors, an electric-car company based in Carlsbad, Calif. The company was probably best known for its futuristic two-person 2e car that balanced on three wheels. It closed down in early December, and company leaders destroyed the 2e models.

    "This is a difficult time for everyone connected with our company because we have never been closer to realizing our vision," said Paul Wilbur, Aptera's CEO. "Unfortunately, though, we are out of resources."

    Groupon clones and Web applications

    Here are some other startups that fell short of realizing their dreams:

    Foodme launched in 2010 with funding from IdeaLab with the idea of brokering deals between diners and restaurants. The service started in Pasadena with plans to expand to Los Angeles and beyond, but it closed in June 2011. The company is one of many national and local Groupon-like sites that shut down, including CityDeals.com, Citycents.com in Baltimore, and LocoLocal, based in Cambridge, Mass.

    Goodmail Systems developed an email certification system that many large companies adopted, including Time Inc., Stubhub, and Overstock. The company, based in Mountain View, Calif., also raised around $45 million in venture capital, but closed in early 2011 after a possible acquisition fell through.

    Beluga, a startup that innovated on group messaging technology, was bought by Facebook in spring of 2011 and then shuttered by mid-December. The application was replaced by Facebook Messenger.

    Learning from mistakes to start anew

    Collecta, a real-time search engine, closed in early 2011 after raising $5 million last year. A message on the company's website says that engineers are "researching applications" for its technology. Thus the startup's shutdown may be temporary, as the founders told Mashable they are working on new ideas.

    The resilience of entrepreneurs like Collecta's founders may propel other companies to rise from the ashes of "failures" cited above.

    "Most of these startups were founded on terrific ideas, and many had great business models to match," said Alexandra Levit, author of Blind Spots: The 10 Business Myths You Can't Afford to Believe on Your New Path to Success. "But the fact remains that the majority of startups fail in the first few years."

    She added that anybody who wants to start a business should put in "a tremendous amount of forethought," particularly on these four questions:

    • What need am I addressing?
    • Do I have the skills sets to pull it off?
    • Do I have the financing?
    • How different is my idea from what's already out there?

    She concluded, "And you have to accept that there is a certain amount of luck involved, or being in the right place at the right time."

    MORE: Small business owners reveal mistakes they're thankful for

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    798 comments

    • Mike  •  4 months ago
      Its very disappointing that all the technology we need for our future success has turned into a zest pool of the most corrupt scumbags on this planet ......
      • Beverly 4 months ago
        "cesspool"
      • Kivaari 4 months ago
        Get the government out of the way. NO tax dollars for pipe dreams. This project was a toy and death trap.
      • Miguel Sosa 4 months ago
        Kivaari, the car looks like a toy.
    • Saxon  •  4 months ago
      How does a company go bankrupt when they are given over $500 million. CROOKS!!!!
      • pǝɹɟlɐ 4 months ago
        guess they needed a billion dollars.
      • Atlantian 4 months ago
        Well it's very simple. Just give me $20 million and I will give you the answer you seek.
      • LAURIE 4 months ago
        spend 501 million
    • Spikey27  •  4 months ago
      The company officials of Aptera Motors should have been destroyed rather than the 20 models. At least put one of the vehicles in a museum.
      • Brian Griffin 4 months ago
        It was done to destroy the evidence that the design had problems, the production had problems, and management was the problem.
      • Micronational Research 4 months ago
        They milked all the DOE money they could get and were down to the wire to actually produce their "wonder-car". At least they produced some models to show off. The "V-Vehicle" company milked the government with nothing more than a drawing or two, and a ballsy con shuffle.
      • blu stone 4 months ago
        Once a " Dog in the Manger "............ Always, a dog in the manger !! Screw humanity ........... it's ALL ABOUT ME !!
    • I'm voting for Ron Pa ...  •  4 months ago
      And What the Hell happened to Aptera..?? I made a down payment on one of their cars long ago. They had thousands of people waiting. Last I heard, they only needed another 33 million !!!! to complete the project. BULLCHITT.! It was all just a big scam by Steve Fambro..Aptera's founder.
      • Shaun 4 months ago
        The Irony of the Mormon religion, Be great to your familys but lie and scam tike the leaders of your church to get there.
      • Mr. X 4 months ago
        If you're going to pick on Mormons then I hope you're an atheist. Otherwise you might want to look how the Catholic church has riches beyond most people's dreams and yet millions of people are starving all over the world. How about all the baptists and evangelicals that we hear about all the time and how they rip off their followers. Perhaps you are interested in LA's Crystal Cathedral. I don't even have to point to Muslims or Jews, their reputation precedes them world wide.
      • Centurion A 4 months ago
        You put a down payment on a car...THAT DOESN'T EXIST....hahahahahahahahahah. YOU ARE AN IDIOT! The Execs at Aptera took their VC money and bought Mercedes Benz, some CLK, SLK's, and one guy even picked up a Lambo Gallardo...and you put a down payment for an electric car that didn't even exist.
    • Philip  •  4 months ago
      A few years ago I visited the Studebaker Museum in South Bend, IN. There I learned that Studebaker was an 1800's farm trailer manufacturer that started making cars in 1902. They made only electric cars. Thomas Edison bought the second one and advised them not to waste their time with gasoline cars because as soon as there was an improvement in battery efficiency no one would want a gas powered car. They started hedging their bets in 1904 by making both, and decided in 1906 that the battery improvements were not going to happen and stopped making electric cars.
      Some things never change – Over 100 years later and people with vested interests and people with little knowledge of science, engineering, technology or economics are promising electric car nirvana.
      Some things have changed – We now have a huge infrastructure of pipe lines, refineries, tank trucks, filling stations, gas tank manufacturers, and gas tank disposal facilities. While we do not have adequate power plants, transmission lines, substations, distribution lines, charging facilities, charging billing systems, or battery disposal facilities to handle a significant number of electric cars.
      In addition we have a highway and road system that is paid for by gasoline taxes. Not to mention other things like mass transportation that are highly subsidized by gasoline taxes.
      • Knight Crusader 4 months ago
        If electric cars were to come true on the roads, Texas will go bankrupt the next day. So will all the oil companies in the US with big vested interests, not to mention the Arabs with only sands to eat.
      • Lephrechan 4 months ago
        IF...big IF...thats all you have!!!!
      • Mr. X 4 months ago
        KC, Texas economy has greatly diversified itself from oil production.
        Big oil companies would have to downsize but they would survive. The computer you typed your post on has lots of petroleum based components in it, so even the Arabs would still make money - just not nearly as much.
    • Terry  •  4 months ago
      The more money that the government has the more it will waste on failed businesses. It isn't the government's job to fund businesses in the first place. Let's stop letting the government spend and tax more than is needed for it to operate as Constitutionally limited. Lower taxes less government spending.
    • z328  •  4 months ago
      FACT... Solyndra was the ultimate con game of the century from the getgo.
    • reality  •  4 months ago
      The elephant in the room that none of the electric car companies are addressing is: How well does the electic car operate in cold temperature areas like say...The northern half of the USA during winter time? Ever see what a car's battery does on a cold day in a parking lot at work?
    • john  •  4 months ago
      How can you mention flops without including the Chevy Volt?
    • Guy Smiley  •  4 months ago
      As long as gas is still reasonably cheap, and as long as they're still going to try to charge you $40k+ for electric cars that barely perform 1/2 as well as a gas car, then electric cars won't take off much.
    • Everett  •  4 months ago
      The government cannot be trusted to pick winners and losers;
      it will typically pick whiners and losers.
    • SME  •  4 months ago
      While the government makes a big show of wanting better fuel economy it has MILLIONS of reasons why it doesn't. Where do you think all of the $$$$ come from for federal highway repairs? It comes mainly from taxes raised by the sale of gasoline. Yup... So what do you think happens when cars get too many MPG's? You guessed it, the government does not get as much money from taxes on gas. This is a HUGE issue going forward. Coming soon to a theater near you!!!
    • Gene  •  4 months ago
      Common guys.... look at this electric yet ugly and unpractical cars. There is no way such cars would fly. Our liberals would never realize that those so call “green” technologies are not there yet. Obama and his liberal friends would spend a fortune on failing technologies because their green policies are based on Hollywood blockbusters instead of real science and common sense.
    • Prudence Do Good  •  4 months ago
      There are billions of gallons of methane gas seeping from under the polar ice caps waiting to be exploited. Why are we not taking advantage of this resorce instead of letting it disapate into the atmosphere adding to the problem of globel warming. It would be easier to recover than it is to drill for oil and if by chance some does leak oh well no big deal it cleans it's self up unlike messy crude oil. Besides this it burns so much cleaner than coal or oil. It's like the old addage if life gives you lemons you make lemonade but in this case nature has given us methane so we will have to make energy.
    • Mustard  •  4 months ago
      Well, boogers! Glad I didn't invest.
    • A Yahoo! User  •  4 months ago
      the e2 was not a bad idea it just that it looked like George jetson car... people should stop and think that the car of the future would need to look like a ufo...
    • Clive Sandringham  •  4 months ago
      I wish I had bought an Aptera Motors two-person 2e car, then I could give those #$%$ Shriners a run for their money in parades!
    • TERRY K  •  4 months ago
      WHERE, did the $535 million dollars in loan money go, did a part of the money go into the Obama war chest to run for reelection.. I think the people in America would like to know, and, does the bankruptcy court ask for information like that, probably not. If I owe a few hundred dollars in back taxes the goverment will take my home, if a big company files for bankruptcy just a few months after getting millions in a sweetheart loan, I damm sure want to get a loan like that, if they would loan me that much money I could pay back the full loan and $535 million on top of that... in one year. how, I watch the stock market all the time, I can make that much with ease and turn a big profit for myself..
    • Peter  •  4 months ago
      In the 80's a start up in Mnpls was making a three wheeled "Freeway Car" for about $ 3 K One seater with enough room for sack of Groc/briefcase Gas version got 60 MPH a 1 cly deisel got 80 " both were just capable of Freeway speeds I really wanted one but was just out of Tech school
    • Ronnie Cole  •  4 months ago
      SOLYNDRA rip-off to TAX PAYERS gee THANKS Mr. Obama !
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