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BlueThrone | Our very own Pietro Messineo at the plSwift 22 convention

The concept of Startup dates back to the year 1550, but definitely with another name. And according to the startup historian, the ‘Edison General Electric Company, now known as ‘GE’, may be framed as the first Startup on this planet.

Eventually, the startup boom didn’t exist before the end of the 1990s, which is also known as the DOT COM boom era. Most of the Unicorns, namely, Facebook, Linkedin, Twitter, Amazon, Google, Uber, Airbnb, Tesla, Yahoo, and Dropbox, started after 1998 or early 2000.

From that time to 2022, in this years the startup ecosystem has seen a meteoric rise mainly in the number of startups. But, despite this rise, most startups today are facing tough times, and most of them are closing their doors within their initial stages.

We communicated with over 472 founders of failed or closed startups across the globe and asked about their harrowing experiences and what were the painful Peebles in their shoes behind their failed ventures.

Here’s what we have learned and accumulated from them:

All of the startups were in different stages of their growth whose founders are the input points of this detailed report. We asked them fundamental questions like:

When had they foreseen that their startups were going to fail?

What was the one cardinal reason or factor behind their failure?

The actual lesions they have learned from it.

There are other reasons too that are not that illustrious like these above, but they also played cardinal roles like:

Lacking passion - Ex. - DaWanda (https://www.cbinsights.com/company/dawanda)

Team & Inverter’s non-integrity - Hubba (https://www.cbinsights.com/company/hubba)

Product Validation Issues - ScaleFactor (https://www.cbinsights.com/company/scalefactor)

Mistimed Launch - Vreal (https://www.cbinsights.com/company/vreal)

Shape, Size and Other Parameters of These Startups as We Found Out

The diversity of these Startups under scanner was overwhelming. According to many Startup pundits, aside the funding reasons, the reason behind failure for any startup can come from inherent entrepreneurial reasons or other factors such as the core values of the working force, their adaptation abilities, and the distributed strength of the team functioning as a conglomerate towards a common purpose.

We delve deep into the stipulated information we harnessed from these founders and use that data to measure most of the corporate, human resource and geo-location-related parameters related to these failed startups.

Industry-Specific Segregation of These Startups

We Analyzed accumulated data and grouped these failed startups regarding their business verticals to understand the diversified challenges that originated from different business sectors. And here’s what we found out:

Startup businesses operate in a wide variety of industries, but are most populous in technological fields

​Fintech, Health and AI have been the continuous leaders since 2018, and as the startup ecosystem goes ahead in the coming years, technology will surely lead the direction of the same.

Funding- Specific Segregation of these Startups

A significant chunk of these failed startups had gone through multiple funding layers, commonly known as ‘series’. We tried to understand if there is any dominant funding type or series among these startups except VC farms. We couldn’t find any leading funding type or any specificity among them.

We focused on the five traditional funding types for these startups:

Series Funding - From A to E(VC funds, Angle Investors)

Crowd Funding - Funding from Friends, Family members, Communities, and Customers

Loan - From Bank & other Financial Organizations, Small Business Administration

As was predicted, more than half of the startups were funded by VC firms, followed by Angel investors & Micro-VC firms. Still, in 2022 the funding trends for startups remain unchanged, although there is a steep fall in VC firm funding volume in 2022, around a 23% fall from last year.

The Timeline of Startup Failures in the Last 5 Years

We have covered a list of major startups that failed during this report data collection period. The funding trends and other financial factors have deeply impacted both the steady and sudden fall of all startups. Similarly, as we have found out, the funding stream for many of these failed startups was not gapless, and this single factor governed the success-to-failure ratio of the startup world.

About Bluethrone’s Startup failure analysis report

Going with the startup market standards, only 1% of the startups become unicorns globally. And 90% of all the startups failed. Of all startups, 10% close their doors within the first year.

Knowing these elemental startup failure stats, Bluethrone delved into the segment of the startups that have failed and tried to churn out more information from these failed ventures. All respondents shared their information through regular digital communication channels like email, e-meetings, 1:1 interview sessions, and social channels.

Insights From the Founders who Failed to See Their Exits and Couldn't Score Big from Their Digital Assets.

Startup Failure Analysis Report From 2018 to 2022

The Startup of Modern Startups

You have developed a mobile app on your own, but you’ve come to the point where it’s time to move on.


Selling and marketing your app can be a difficult process if your app is not a top-charting app. The ideal situation is a thriving app with solid revenue with an ARPDAU of at least $0.05 and D1 user retention of at least 50% and a growing user base.


Not every app has this luxury, but your app can still be an attractive buy for investors.


The first step is gathering data about your app and crafting a pitch that will make the app look attractive to companies and investors.

Before pitching your app, make sure you have data ready to show. Here is some information to keep track of:

Upkeep expenses. How much are you currently paying for API servers, domains, and other upkeep expenses? Prospective buyers want to make a profit, so it is important to let them know how much they will need to keep paying after buying.


Getting funding will be easier if you can get someone interested in your app in a pinch. The goal is to 

hook a listener on the app in 20-30 seconds

. Powerful people say less. If you have the self-worth to believe in your app, investors will too.

Investors like simple pitches that tell a story

, and the pitch should take no longer than 5 minutes. An experienced venture capitalist once stood before a group of app developers at a hackathon and gave them a simple formula for crafting a pitch deck in 3 pages. Here is that formula.

: Describe the world before the app and the problem. For example, if you have an Android app that renews an eyeglass prescription, paint a tedious day renewing a prescription: booking a day off work, driving to the eye doctor, and spending hours taking an eye test. They won’t have time for afternoon karaoke with their children.

: Describe how the world looks after your app fixes the problem. Using the previous example: Now, people can renew eyeglass prescriptions online in half an hour without a trip to the doctor. They’ll save money on gas and have time for their children.

: Describe how your app will make money for you and the investors. Keep this brief. This section is where you can describe everyone on your team and their roles.
Whether you are pitching to someone at a party, or a group of investors, keep the pitch short. Powerful people use fewer words. If you have the self-worth to believe in your app, investors will too.


Template of the pitch to sell an app to a company


: Begin by introducing yourself and the app you are selling. Explain what the app does and how it can benefit the company.

: Describe the problem that the app solves for the company. Explain how the app addresses this problem uniquely and effectively.

: Identify the target audience for the app and how it aligns with the company's target audience.

: List the key features of the app and the benefits they provide to the company. Be specific and provide examples of how the app can improve efficiency, increase productivity, or provide some other tangible benefit.

: Provide pricing information for the app. Be transparent and upfront about the cost of the app and any ongoing maintenance or support fees that may be required.

: Offer to provide a demo of the app to the company so they can see it in action and understand how it works.

: End the pitch by outlining the next steps the company can take to purchase the app. Make it clear and easy for them to move forward with the purchase.

: Include your contact information so the company can reach out to you with any questions or to move forward with the purchase.

Once you have a pitch prepared, you’re ready to look for places to sell your app.


Similar to eBay and other online stores, app marketplaces are platforms where you can list your app, and interested buyers can contact you to request more information and submit offers. 

These platforms are a great option for smaller apps

, that have less than $5k per month in revenue, or less than 5k downloads. The two biggest app marketplaces are Flippa ($375 million in sales), and Empire Flippers ($280 million in sales).

Wait for an interested buyer! Negotiate the price, reach an agreement, and receive payment.

- This popular website flipping platform is the most popular option for apps as well. The commission is cheap, and submitting a listing involves fewer steps. Buyers are left to do their to dueto diligence and sellers can be more prone to copycats due to the platform’s hands-off approach.


 - This platform offers more protection in exchange for higher commission rates for smaller apps. The vetting requirements are more stringent, but once your app is accepted, the platform claims that 84% of listings have successfully sold.


App aggregators such as Bluethrone are a new option for sellers. Instead of acting as an intermediary between sellers and buyers, Bluethrone directly buys apps.


Bluethrone requires all prospective apps to pass the 5K rule

. Potential apps must be making at least $5k in monthly revenue, and have at least 5,000 downloads.
To sell your app on Bluethrone:

Contact Bluethrone, and apply for an App Exit.

Connect your app’s analytics platform so that Bluethrone can look up marketing data such as downloads, revenues, and sales.

Bluethrone has developed data-driven technology that projects your app’s growth. After applying for an Exit, Bluethrone’s team of experts will 

Once Bluethrone sends you a proposal, negotiate a price for the app. This doesn’t lock you into selling! You can get a quote and sell in the future.

Sign a contract with Bluethrone. Celebrate your finished sale!

Big companies have many submissions every day. Many companies such as Apple and Google have 

 that discourage unsolicited ideas. Everyone wants to be acquired by a larger company, making it much harder to be seen. It will be easier to get companies to listen if you know someone at the company.


Being in the community is an excellent way of getting to know people in the industry. Hackathons and business development 

such as TechCrunch, HackZurich, and hackNY

Here are some other events for app promotion events:

. Attendees here can expect to network and trade secrets in app growth.

. Focused on marketing and inclusivity, this event is a great place to find creative and modern ways to sell your app.

. A networking event focused on the future of the mobile industry. Themes include Augmented Reality, Fintech, and 5G.


How to sell mobile apps to small businesses

Big businesses can afford to invest in apps that may not fulfill an immediate monetary need. Some smaller businesses, however, can only afford to invest in things that will immediately grow their business. 

Bluethrone is a simple and straightforward option

. As the first online app aggregator, Bluethrone purchases apps directly. If your app has at least 5k in monthly revenue and over 5k downloads, consider selling your app via 

.
If you are having trouble selling your app, consider a different tactic.


Consider repurposing your app for an adjacent company’s niche. Small businesses are often looking for apps built specifically for them.


For example, if you have built an app like Yelp, it is unlikely to beat Yelp. However, perhaps there is a local restaurant with a few locations in their chain looking to expand.


A mobile application could help their brand grow

. With a few modifications, it could be 10x or even 100x their revenues. A button to share dishes on Twitter, Facebook, and Instagram might double or triple their social media presence. The app could notify customers about new deals and promotions.


A digital stamp card feature could offer to repeat customers a free dish for every 10th purchase. Here customers can write a Yelp review and get a discount on purchases. The app becomes a home where people who love the business can show their loyalty to the brand in exchange for perks and benefits.

Your app could help them grow their business and create a loyal customer base that could multiply their revenue

If you are attached to your application, there is the option of partnering with Bluethrone instead. Bluethrone has added a route for developers to form a partnership and streamline the process of selling their apps. You will gain access to Bluethrone’s unlimited resources and team of experts while maintaining ownership of your app.

: This popular mobile game was developed by OMGPop, a small startup based in New York City. In 2012, Draw Something became a sensation, with millions of daily users and strong revenue from in-app purchases. According to reports, 

OMGPop's CEO Dan Porter prepared a detailed pitch deck that demonstrated the game's potential for growth and monetization

. Porter also made sure to highlight the app's strong user engagement and retention metrics, which were key selling points for potential buyers. In March 2012, the game was acquired by Zynga for $180 million, a huge payday for the small team behind the app.


A strong pitch deck and focus on key metrics, such as user engagement and retention, can help to persuade potential buyers.

Timing can be crucial in in-app sales – Draw Something was acquired just as it was gaining significant traction, which likely increased its value.

It's important to be prepared for potential buyers and have a clear idea of what you want to achieve from the sale.

: This popular navigation app was developed by a small team in Israel and launched in 2009. Waze quickly gained a loyal user base thanks to its unique features, such as real-time traffic updates and the ability to report incidents on the road. In 2013, Google acquired Waze for $1.1 billion, recognizing the app's potential to disrupt the traditional mapping and navigation industry. According to reports, 

the Waze team prepared a detailed pitch deck that demonstrated the app's growth potential and unique value proposition

. They also emphasized the app's strong user engagement and the potential for monetization through advertising.
What can we learn from this example?


A unique value proposition and strong user engagement can make an app more attractive to potential buyers.

It's important to have a clear growth strategy and be able to demonstrate the potential for monetization.

Being able to negotiate favorable terms, such as allowing the team to continue operating independently, can be key to a successful sale.

: This Finnish mobile game developer has had several successful app sales, including the popular games Clash of Clans and Clash Royale. In 2016, Supercell was acquired by Tencent, a Chinese tech giant, for $8.6 billion, making it one of the most successful app sales in history. 

Supercell's success can be attributed to its focus on creating high-quality games with strong replay value and monetization potential

. The company also invested heavily in marketing and user acquisition to build a large and loyal user base.
What can we learn from this example?


A focus on creating high-quality, replayable games with strong monetization potential can be key to success in the mobile game industry.

Investing in marketing and user acquisition can help to build a large and loyal user base.

Being able to negotiate favorable terms, such as a large upfront payment and a share of future revenues, can be crucial in in-app sales.

: This messaging app was developed by a small team in 2009 and quickly gained a large and loyal user base thanks to its simple interface and focus on privacy. In 2014, Facebook acquired WhatsApp for $19 billion, recognizing the app's potential to disrupt the traditional messaging industry. According to reports, 

the WhatsApp team prepared a detailed pitch deck that demonstrated the app's strong user growth, engagement, and retention

. They also emphasized the potential for monetization through advertising and business messaging.
What can we learn from this example?


A focus on user growth, engagement, and retention can make an app more attractive to potential buyers.

The potential for monetization through advertising or business messaging can be a strong selling point.

Being able to negotiate favorable terms, such as allowing the team to continue operating independently and retaining a share of future revenues, can be crucial to in-app sales.

Overall, these examples demonstrate that it is possible to sell a successful app to a larger company, even if you are a small team or an independent developer. With the right pitch, value proposition, and marketing efforts, you can attract the attention of potential buyers and negotiate a successful sale. It's important to be prepared and have a clear idea of what you want to achieve from the sale, as well as to be flexible and adaptable.


Before attempting to sell your app to a company, it is important to thoroughly research the market for your app. This includes understanding the 

, identifying potential customers or target markets, and determining the price point and revenue potential for your app.


Some key factors to consider when conducting market research include:


: Who are the main competitors in your space, and what features and functionality do they offer? How does your app compare in terms of value proposition, pricing, and user experience?


: Who is the target audience for your app, and how does this align with the company you are hoping to sell to? It is important to have a clear understanding of the needs and preferences of your target market to tailor your pitch and customize your app as needed.


: What is the price point for your app, and how does this compare to similar apps in the market? How much revenue do you expect to generate from your app, and what are the key drivers of this revenue (e.g. in-app purchases, advertising, subscriptions)?


Depending on the needs of the company, you 

may need to customize your app to better fit their needs

. This could involve adding specific features or functionality or tailoring the design and branding to fit the company's style.


Some potential areas for customization could include:


: Is the company looking for specific features or functionality that your app does not currently offer? Consider adding these features to better meet the needs of the company.


: Does the company have specific design guidelines or branding elements that you need to incorporate into your app? Make sure to align the design and branding of your app with the company's style to create a cohesive brand experience.


Partnering with other companies or organizations can be a 

great way to promote and distribute your app

. These partnerships could include co-marketing efforts, cross-promotion, or even joint ventures to jointly develop and sell the app.


You have developed a mobile app on your own, but you’ve come to the point where it’s time to move on.

Selling and marketing your app can be a difficult process if your app is not a top-charting app. The ideal situation is a thriving app with solid revenue with an ARPDAU of at least $0.05 and D1 user retention of at least 50% and a growing user base.

Not every app has this luxury, but your app can still be an attractive buy for investors.

Learn different ways to sell your precious app to a company, including all the tips you need to know in every step.