This document outlines three failures of a startup company and the lessons learned from each failure. [1] The company raised 7.5 million Euros to build a copyright clearance product for one customer then try to sell it more broadly, failing to do adequate market research. [2] They grew too fast without knowing how to invest the funds wisely. [3] They missed their target market with a pivot, having 30 million registered users but only 585,000 paid subscribers, showing the need to properly research the market.

1. Three very,
very expensive
lessons for
startup
entrepreneurs
Leo Exter

2. You can’t really
choose what you
do…
But you can find
the way to do it
that will work.

3. Back in the days
of the Bubble,
there was this
company…
Image: Good Wallpapers

4. Our mission:
“copyright
clearance”

5. €20,000,000,000
That’s how huge our market was!

6. The company
raised a massive
pile of money:
€ 7,500,000
Image: images of money

7. Created 23 jobs:
CEO
6 in Sales
9 Developers
2 Legal
2 in Marketing
3 in Operations

8. Sold 2 years later
for € 300,000

9. So far ahead of the curve that we
weren’t even on the road…
Image: Ann Cantelow

10. #fail nr. 1:
We built a product
for 1 customer,
then tried to sell it.

11. #lesson nr. 1:
Do more research,
find a common
problem.
Then solve it.
Image: Chris Koertgen

12. #advice nr. 1:
Read this book,
do as it says.
http://www.runningleanhq.com/

13. #fail nr. 2:
We grew too fast.

14. #lesson nr. 2:
Don’t raise funds
till you know how
to invest wisely.
Image: phantomswhife

15. #advice nr. 2:
Be patient.

16. We went for a
pivot…

17. It didn’t work
either.

18. 30 million
registered users.
585,000 paid
subscribers,
$99.99 a year or
more...

19. #fail nr. 3:
Missed target market.
Image: rgmcfadden

20. #lesson nr. 3:
#lesson nr. 3:
It’s a big planet.
Someone will buy It’s a big planet.
your stuff. Someone will buy
your stuff,
If you can reach eventually.
them.
Image: NASA

21. #advice nr. 3:
Keep an open
mind when doing
your research.

22. Thank you!
leo@westartup.eu
www.westartup.eu
@leoexter