Jawbone‘s demise last week closed the book on the wearables company, which saw at least 16 separate financing rounds over the company’s 17 years in existence. The company raked in $929.9M in disclosed funding, making it one of the most well-funded companies ever to fold.
Jawbone ranks as the second costliest startup death or asset sale ever by a VC-funded company globally since at least 2009, as well as the most expensive failure by any consumer electronics startup, according to CB Insights data.
Since 2009, the only failed VC-backed startup in any industry to have burned through more cash than Jawbone was Solyndra – the solar technology startup that became famous for raising $1.22B (including $535M from the federal government) before closing shop in 2011.
Solyndra’s disclosed valuation peaked at $791M in 2009, while Jawbone’s highest-ever valuation was $3.2B in 2014. Jawbone’s last valuation prior to its shuttering was $1.2B, following back-to-back downrounds in Q2’15 and Q1’16. (Click here for a closer look at Jawbone’s valuation history.)
Jawbone is also the only consumer electronics company among the top ten costliest VC-backed startup failures. Four of the five most expensive flameouts come from the solar technology industry: Abound Solar secured $614.4M in funding (including $400M from the federal government) before shuttering in Q3’12; MiaSole raised $526.4M before an asset sale in Q3’12; and Nanosolar closed $491.5M in funding before dying in Q3’13.
Rounding out the top ten are startups from a variety of industries: Online lender Privlo ($358.6M raised) died in Q4’15; media startup Mode Media ($229.2M) died in Q3’16; biopharmaceutical company Biolex Therapeutics ($208.1M) died in Q3’12; and energy startups Aquion Energy ($196.6M) and Range Fuels ($189.5M) died in Q1’17 and Q4’11, respectively.
All ten of the costliest VC-backed failures were US-based companies. See the full list below.
|Rank||Company||Closure||Fail Date||Total Amount Raised||Category|
For more on why well-funded startups fail, check out post-mortems of 111 of the costliest deaths of all time.
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