Lado Okhotnikov Analyzed the Failures of Multi-billion Dollar Startups Cruise, Convoy, WeWork and Byju’s
The year of 2023 saw the collapse of large tech startups that attracted multibillion-dollar investments. Lado Okhotnikov, leader and creator of the Meta Force metaverse, explores the negative experiences of companies that failed. The interest in this topic is understandable, since analysis of the reasons for the failures of other companies is necessary in order to eliminate similar errors in one’s own work.
Lado Okhotnikov uses some companies that will go bankrupt in 2023 as an example of the fall of startups.
Cruise, which developed a self-driving system, got off to a great start, but suffered a fatal accident while operating a car. The misbehavior of management, who tried to clumsily “hush up” the incident, became fatal and caused significant damage to the reputation of the “parent” company General Motors.
Convoy, a leading US company in the field of IT solutions for freight transport, also faced problems due to poor management policies. Despite a promising start, the company went bankrupt in 2023, partly due to the difficult logistics market and an increase in the key rate by the US Federal Reserve.
WeWork is another coworking startup that has experienced a meteoric rise and fall. However, the failure to disclose accurate financial information in 2019 led to the company’s valuation being reduced to $8 billion. The COVID-19 pandemic and the trend of remote work severely undermined demand for office space leasing, causing the organization to go bankrupt in less than a year.
IRL, which positions itself as a platform for organizing real meetings and events, has encountered problems due to deception. It turned out that out of the claimed 19 million users, only 5% were real, and the rest were fakes.
After two years, at the end of 2023, a ready-made concept of the Metaverse appeared in which players will be able to spend their time profitably. That is, for some the ecosystem will become a tool for earning money, for others it will be a way to spend their leisure time in an exciting way.
Lado Okhotnikov took a radical approach to the developing the concept in the order to the move away from the pay to theplay model. Traditional games of this type often operate on centralized servers of large gaming companies. As a result, the gaming experience, in-game purchases, and the gaming environment itself remain under the control of these companies, not the players. For example, a purchased new weapon or armor, or a character upgrade, are limited by the confines of a specific gaming platform or virtual universe. The player can only use these items where they were purchased.
Byju’s, a former “unicorn”, faced problems going public. Investors and auditors found shortcomings in corporate governance: rapid growth was driven by the acquisition of ed-tech startups. Unfortunately, the company’s management was unable to effectively integrate the numerous acquired startups. As a result, capitalization collapsed from $10 billion to $200 million.
These stories show that even giant startups that reach business heights face serious challenges.
Reasons for failure include external factors and internal problems, including poor management, defrauding investors, or an unsustainable business model. Lado Okhotnikov sums up the results and declares the reasons that lead a business to death in the full version of the article.
About Meta Force
Meta Force is a technology platform founded by Lado Okhotnikov. The project is aimed at users and investors working in the areas of virtual reality, gamification, GameFi and DeFi. The company is working for the long term, as virtual reality and metaverses are evolving and are a priority direction for the development of future technologies.
The Head of Meta Force Press Center
press@meta-force.space
#lado okhotnikov
#metaverse
#meta_force
#forcecoin
