Top 10 Most Expensive Business Failure In The World
Updated · Mar 20, 2025
TABLE OF CONTENTS
Introduction
Most Expensive Business Failure: Startups come and go quickly, but there’s always something to learn when big companies and industry leaders make the mistake of thinking they’re unbeatable. Changes in the market can shake even the strongest businesses.
This proves that no company is completely safe—getting too comfortable can lead to a lack of innovation and eventual failure. To understand this better, here’s a list of well-known brands that struggled because they didn’t adapt.
Reasons for Failure of a Business
(Source: investopedia.com)
#1. Not Researching the Market
- Let’s say you’ve always dreamed of starting a real estate agency. You finally have the money to do it, but you don’t check if the market is right.
- The economy is struggling, and your area already has too many real estate agencies, making it very hard to succeed.
- One of the biggest mistakes new business owners make is jumping in without researching the market.
- Instead of trying to force a product or service onto people, look for a gap in the market—something customers already need but don’t have. It’s much easier to meet a demand than to create one and convince people to spend their money on it.
#2. Poor Business Planning
- A well-thought-out business plan is the backbone of a successful company. It should cover:
- Realistic goals and how to achieve them
- Market research to confirm there is demand
- Estimated costs and funding sources
- A timeline for growth and marketing strategies
- Once you create your plan, stick to it. Suddenly, changing your approach or overspending without a clear reason can lead to failure. If your plan turns out to be inaccurate, don’t just make random changes. Instead, analyse the mistakes, fix the plan, and move forward with a solid strategy.
- Many businesses also fail because of poor money management. In fact, a U.S. Bank study found that 82% of businesses fail due to cash flow problems.
#3. Not Enough Money
- Starting a business with too little money can be a disaster. If your business is struggling and you run out of cash, it will be hard to secure another loan.
- To avoid this, plan and make sure you have enough money to keep your business running until it starts making a profit.
- If you don’t have enough funds at the start, your business might fail before it even has a chance to grow.
- It’s also smart to look for multiple ways to get funding instead of relying on just one source.
- Learn about different financing options, such as loans, investors, or grants, and be creative in securing money for your business.
#4. Poor Location, Weak Online Presence, and Ineffective Marketing
- If your business relies on customers visiting your store, a bad location can seriously hurt sales. But even if you have a great location, a weak online presence can be just as damaging.
- Nowadays, customers search online before deciding where to shop. If they can’t find your business, they might go to a competitor instead.
- Having a good website and active social media can make your business more visible and trustworthy.
- Marketing is just as important. It’s not enough to advertise—you need to target the right audience.
- For example, a billboard may not be the best way to advertise an online business, just like social media ads might not be the best approach for a construction company.
- Choose marketing strategies that match your industry and customer base.
#5. Refusing to Adapt
- Just because your business is successful now doesn’t mean it always will be. Customer needs change, and industries evolve.
- Companies that refuse to adapt often fail. A great example is Blockbuster, which ignored the rise of streaming services like Netflix. The music industry also struggled when it failed to adjust to digital downloads and streaming.
- To stay successful, monitor trends and adjust your strategy when necessary. Being flexible and open to change can help your business survive long-term.
#6. Expanding Too Fast
- Growth is exciting, but expanding too quickly can be risky. Whether you’re opening new locations or introducing new products, treat expansion like starting a brand-new business.
- Before expanding, research the new market to ensure demand. If you grow too fast without a solid plan, the costs of failure could harm your entire business.
Top 10 Most Expensive Business Failure In The World
#1. Pets. com
- Founded: 1998
- Closed: 2000
- Losses: $110 million
- Reason for Failure: High shipping costs made the business unsustainable.
The Dot-Com Crash
Pets.com was one of the biggest failures of the dot-com boom. Launched in 1998, the company had plenty of investor money and aimed to dominate the online pet supply market. It attracted a lot of customers and orders, but it spent too much on advertising before earning enough profit. As a result, the company shut down in just two years. While it wasn’t the costliest failure, it remains one of the most well-known.
#2. Anki
(Source: naturallanguagejourney.com)
- Founded: 2010
- Closed: 2019
- Losses: $205 million
- Reason for Failure: The products didn’t meet customer expectations.
Robot Hype That Didn’t Last
Anki was a U.S.-based robotics and AI company that created small robots for kids. Investors poured in over $200 million, hoping that its robots, Cozmo and Vector, would use emotional intelligence to become the next big thing in toys. However, the company struggled to get more funding, and in the end, its robots were just small gadgets that chatted with kids in gibberish.
#3. Abound Solar
(Source: wikipedia.org)
- Founded: 2007
- Closed: 2012
- Losses: $614 million
- Reason for Failure: Expensive and unreliable technology.
Too Costly for the Solar Market
Abound Solar was one of the priciest failed solar startups. It lost nearly $614 million in just five years. Since solar energy is all about keeping costs low, Abound Solar couldn’t make its technology cheap enough to compete. In addition, the company relied too much on government subsidies instead of creating a sustainable business model.
#4. Webvan
(Source: wikipedia.org)
- Founded: 1996
- Closed: 2001
- Losses: $800 million
- Reason for Failure: Expanded too fast without enough demand.
Grocery Delivery Before Its Time
Before services like Instacart and Walmart+ became popular, Webvan tried to launch a grocery delivery service in 1999. The idea was great, but the company expanded too quickly without testing demand in smaller areas first. It spent huge amounts of money without enough customers, which led to its downfall.
#5. Theranos
(Source: ft.com)
- Founded: 2003
- Closed: 2018
- Losses: $700 million – $1.4 billion
- Reason for Failure: False claims about its technology.
A Multi-Billion Dollar Scam
One of the most infamous failed startups, Theranos raised hundreds of millions from wealthy investors, including the Waltons, Carlos Slim, and Betsy DeVos. It claimed to have developed a groundbreaking blood-testing technology. However, the technology never actually worked. At one point, the company was valued at $9 billion, but it collapsed entirely, leaving investors with nothing and its CEO in prison.
#6. Jawbone
(Source: slashgear.com)
- Founded: 1999
- Closed: 2017
- Losses: $900 million
- Reason for Failure: Poor marketing and weak sales.
Wearable Tech That Didn’t Take Off
Before the Apple Watch dominated the smartwatch market, Jawbone tried to do the same with wearable fitness trackers, Bluetooth headsets, and wireless speakers. At its peak, the company was valued at $3.2 billion, but by 2015, it held just 3% of the market. Eventually, it couldn’t compete and shut down in 2017.
#7. Better Place
(Source: theconversation.com)
- Founded: 2007
- Closed: 2013
- Losses: $850 – $900 million
- Reason for Failure: Poor management and high infrastructure costs.
A Tesla Competitor That Never Took Off
Better Place was an electric vehicle company founded by entrepreneur Shai Agassi. It raised nearly $900 million to build battery-swapping stations for electric cars. However, the costs of building this infrastructure were too high, and the company couldn’t keep up financially.
#8. Solyndra
(Source: forbes.com)
- Founded: 2005
- Closed: 2011
- Losses: $1.2 billion
- Reason for Failure: Couldn’t compete with cheaper solar panels.
Government-Backed, But Still Failed
Solyndra was one of the most hyped solar startups ever. The Obama administration gave it a $535 million loan and private investors added another $1.2 billion. Unfortunately, in 2011, the cost of materials needed to produce solar panels dropped, making Solyndra’s product too expensive. Without a competitive price, the company went out of business.
#9. LeSports
(Source: scmp.com)
- Founded: 2014
- Closed: 2017
- Losses: $1.7 billion
- Reason for Failure: Poor financial management and overspending on broadcasting rights.
A Streaming Service That Ran Out of Money
LeSports aimed to take over the sports streaming market in Hong Kong. Investors put in $1.7 billion, expecting it to thrive. However, the company expanded too aggressively and spent too much, even struggling to pay rent at one point. Its biggest mistake was not securing a profitable revenue model before scaling up.
#10. Quibi
(Source: bbc.com)
- Founded: 2018
- Closed: 2020
- Losses: $1.75 billion
- Reason for Failure: Mobile-only content didn’t connect with viewers.
The Most Expensive Startup Failure Ever
Quibi was one of the costliest failed startups, with over $1.75 billion in funding and major names behind it, including Jeffrey Katzenberg and Meg Whitman. The idea was to offer short, high-quality videos for mobile users. However, the concept didn’t catch on. Unlike TikTok, which focuses on user-generated content, Quibi was more like traditional TV, and that ultimately led to its downfall.
Famous Entrepreneurs Who Faced Failure Before Finding Success
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Nick Woodman’s Funbug
Before launching GoPro, Nick Woodman created Funbug in 1999. It was a gaming and marketing website where users could win cash prizes. Even though he raised over $3.9 million from investors, the company failed to attract enough users and shut down in 2001. It later became known as one of the biggest failures of the dot-com era.
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Richard Branson’s Pet and Christmas Tree Ventures
Richard Branson, the well-known founder of Virgin Group, began his business journey in 1966. As a teenager, he first tried breeding and selling parakeets, but they reproduced faster than he could sell them, so he had to shut the business down. He then switched to growing and selling Christmas trees, but rabbits ate his crops, causing that business to fail, too.
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Bill Gates’ Traf-O-Data
Before Microsoft launched, Bill Gates, Paul Allen, and Paul Gilbert started Traf-O-Data, a company that analysed traffic data to help engineers manage roads. However, when they tried demonstrating their software, their computer didn’t work. The business collapsed when Washington State started offering free traffic data services to cities.
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Henry Ford’s Detroit Automobile Company
In the late 1890s, Henry Ford quit his job at Edison Illuminating Company to start the Detroit Automobile Company with backing from businessman William H. Murphy. Unfortunately, the prototype Ford built had too many problems. After more than a year of unsuccessful changes, investors lost patience and shut the company down in 1901.
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Sir James Dyson’s 5,127 Failed Attempts
Before inventing the bagless vacuum cleaner, Sir James Dyson spent 15 years working on his design. He created 5,127 prototypes before launching his first successful model, the “G-Force.” However, no company in the UK wanted to sell it. He managed to find some success selling in Japan, but it took years before his company gained recognition in the UK.
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Henry J. Heinz’s Bankruptcy in the Horseradish Business
Henry J. Heinz, the name behind Heinz ketchup, originally started by selling bottled horseradish. It became popular in the late 1800s, but during the Panic of 1873, an economic crash forced Heinz into bankruptcy because he couldn’t pay his employees or creditors.
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Walt Disney’s Laugh-O-Gram Studio Failure
Before founding The Walt Disney Company, Walt Disney started Laugh-O-Gram Films, Inc. at age 20. He signed a deal to create six animated shorts for Pictorial Clubs, but soon after, Pictorial Clubs went bankrupt. With rising debts and no payment for his work, Disney had no choice but to close his first company.
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Colonel Sanders’ Failed Gas Lamp Business
Before launching KFC, Colonel Harland Sanders tried many different jobs, including running a ferry boat, selling tires, and managing a gas station. One of his biggest failures was investing in a gas-powered lamp business. He bought the patent rights and started a manufacturing company, but the business failed quickly.
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Akio Morita’s Flawed Rice Cooker
In its early years, Sony developed an electric rice cooker created by Akio Morita and Masaru Ibuka. The design used metal electrodes at the bottom of a wooden tub to heat rice. However, the product burned more rice than it cooked, and only 100 units were sold before the project was scrapped.
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Evan Williams’ Odeo Podcasting Failure
Before co-founding Twitter, Evan Williams created multiple online businesses, including Blogger. In 2004, he co-founded Odeo, a company focused on podcasting. However, when Twitter started gaining attention, Odeo was abandoned and eventually shut down.
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Rowland Hussey Macy’s Failed Retail Stores
Before creating the Macy’s department store empire, Rowland Hussey Macy struggled in retail. Between 1843 and 1855, he opened four dry goods stores, including his first Macy’s store in Haverhill, Massachusetts. Unfortunately, all four businesses failed due to low sales and weak customer demand.
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Steve Jobs’ Expensive Apple Lisa
Even tech visionary Steve Jobs had failures. One of his biggest flops was the Apple Lisa, launched in the 1980s. It was one of the first personal computers with a graphical user interface, but its $10,000 price tag made it too expensive for most users. The product was a sales disaster, which eventually contributed to Jobs’s firing from Apple in 1985.
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Milton Hershey’s First Two Candy Shop Failures
Before founding Hershey’s, Milton Hershey borrowed $150 from his aunt to start a candy shop in Philadelphia. He worked hard for five years, but the business failed. He then tried opening shops in Chicago and New York City, but both also failed. Eventually, he moved back to Lancaster, Pennsylvania, and founded The Hershey Company a decade later.
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Soichiro Honda’s War-Torn Business
In 1937, Soichiro Honda founded Tōkai Seiki, an organization that manufactured piston rings for Toyota. During World War II, a U.S. air raid destroyed his factory. With his business in ruins, Honda sold the remaining parts to Toyota. However, he later used the money to launch Honda Motors in 1946, which became a global success.
Conclusion
The business failures of 2025 show that even the biggest companies can fall apart if they don’t keep up with market changes, customer needs, and financial struggles. From major bankruptcies to costly startup collapses, companies lost billions of dollars because of poor planning, bad management, and unexpected market shifts.
These failures prove how important it is for businesses to be innovative, have strong financial plans, and be ready to change when needed. As industries keep evolving, only companies that stay ahead of trends and make smart choices will avoid becoming another costly failure in the future.
Sources
FAQ.
The Chornobyl disaster is the costliest accident in history, with an estimated price tag of $700 billion. It was a rare and extremely destructive event, and thanks to better nuclear safety rules, a disaster of this size is not likely to happen again.
Many startups fail because of several major reasons, including not having the right product for the market, weak marketing plans, and money problems. Why do business owners fail? Most of the time, a business shuts down due to a mix of these and other issues.
Saisuman is a talented content writer with a keen interest in mobile tech, new gadgets, law, and science. She writes articles for websites and newsletters, conducting thorough research for medical professionals. Fluent in five languages, her love for reading and languages led her to a writing career. With a Master’s in Business Administration focusing on Human Resources, Saisuman has worked in HR and with a French international company. In her free time, she enjoys traveling and singing classical songs. At Coolest Gadgets, Saisuman reviews gadgets and analyzes their statistics, making complex information easy for readers to understand.
