How Can a Startup with 5M Users Fail

This an article to forward to all those who share a simplistic philosophies of “Build It and They Will Come” or “Money does not matter, only great product and getting a lot of users matter”.

This Startup Had Over 5 Million Users And A Great Product. Then It Folded.” on Fast Company:

Consider Springpad, a startup founded in 2008 and once considered an Evernote rival. That wasn’t enough. The company failed to develop a monetization strategy–and despite their best efforts (and rumored acquisitions by Amazon and Google), things just didn’t turn around in time.

“We built a heck of a product. But we didn’t build the business.”

“We ran out of money, that’s basically the end of the story. It was a timing problem.”

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