The startup world is notorious for its rapid rise-and-fall stories. One minute, a company is hailed as the next big thing, attracting millions in venture capital, and the next, it’s closing its doors in spectacular fashion. While every startup dreams of becoming the next unicorn, the harsh reality is that many flame out as quickly as they rise. Let’s dive into some of the most infamous startups that seemed destined for greatness but went bust overnight.

1. Juicero: The $400 Juice Machine Fiasco

Juicero is one of the most iconic examples of a tech startup that skyrocketed on hype before crashing hard. The company launched in 2016 with a $400 juicer that claimed to revolutionize the way we make juice. Its high-tech, Wi-Fi-enabled machine squeezed proprietary juice packs to create fresh juice at home, with investors pouring $120 million into the company, including backing from Google Ventures and Kleiner Perkins.

However, the dream unraveled when it was discovered that users could manually squeeze the juice packs with their hands, making the expensive machine redundant. Once this glaring flaw was exposed, the company became the laughingstock of Silicon Valley. Juicero’s founder tried to defend the product, but the damage was done. In September 2017, Juicero announced it was shutting down.

Why It Went Bust Overnight: The product was overpriced and overhyped, and once it became clear that the machine added no real value, the company collapsed under its own ridiculousness.

2. Theranos: The Fake It Till You Make It Scandal

Theranos, founded by Elizabeth Holmes in 2003, promised to revolutionize healthcare by enabling hundreds of medical tests with just a few drops of blood. The company attracted $700 million in funding from high-profile investors and was valued at $9 billion at its peak. Holmes was hailed as the next Steve Jobs, and Theranos seemed destined to change the world.

But in 2015, investigative reporting from The Wall Street Journal revealed that Theranos’ technology didn’t work. The company had been using traditional machines to run tests while misleading investors and patients about the capabilities of their own devices. The fallout was swift and brutal. By 2018, Theranos was dissolved, and Elizabeth Holmes was charged with fraud.

Why It Went Bust Overnight: Theranos’ entire business was built on deception. Once the truth about their non-functional technology came out, the company collapsed in a matter of months.

3. Beepi: The $150 Million Car Startup Crash

Beepi was founded in 2013 with the goal of transforming the used car marketplace. The startup allowed users to buy and sell used cars online, promising a hassle-free, peer-to-peer experience without the middleman. Beepi raised $150 million in venture capital and was valued at $560 million at its peak.

Despite the initial hype, Beepi quickly ran into financial trouble. The company’s business model was fundamentally flawed, with razor-thin margins that couldn’t cover its high operating costs. After failed acquisition attempts and mounting losses, Beepi shut down in February 2017, just four years after its launch.

Why It Went Bust Overnight: Beepi’s business model was unsustainable, and they ran out of cash after burning through millions in venture funding.

4. MoviePass: The Subscription Model That Didn’t Work

Launched in 2011, MoviePass offered users unlimited movie theater access for a flat monthly fee, which at its peak dropped to just $9.95 per month. This was a revolutionary idea that promised to disrupt the movie industry, and subscribers flocked to the service. By 2018, MoviePass had over 3 million users.

The problem? The business model made no sense. MoviePass was paying full price for tickets while charging subscribers less than the cost of a single movie. As the company hemorrhaged money, its stock tanked, and service became increasingly unreliable. MoviePass tried introducing restrictions, but by September 2019, it was dead.

Why It Went Bust Overnight: The company’s pricing model was doomed from the start. They were essentially selling movie tickets at a loss, and when the losses became unsustainable, the company imploded.

5. Homejoy: Cleaning Up Before the Collapse

Homejoy was founded in 2010 as an on-demand cleaning service, quickly gaining popularity for its affordability and convenience. The startup raised $40 million from investors, including Google Ventures, and seemed poised to dominate the home services market.

However, Homejoy struggled with worker classification issues. The company treated its cleaners as independent contractors, which sparked lawsuits that claimed workers should be classified as employees. The legal challenges, combined with customer retention problems, led to Homejoy’s downfall. The company shut down in 2015, just five years after launching.

Why It Went Bust Overnight: Homejoy’s business model was undermined by legal issues and an inability to maintain a loyal customer base, leading to its sudden shutdown.

6. Quibi: The Billion-Dollar Streaming Catastrophe

Quibi was supposed to be the next big thing in entertainment. Founded by Hollywood mogul Jeffrey Katzenberg and former HP CEO Meg Whitman, the mobile-only streaming service promised to revolutionize video content with “quick bites” of 10-minute episodes tailored for on-the-go viewing. The company raised $1.75 billion in funding and launched in April 2020.

However, Quibi was dead on arrival. The app failed to gain traction, its content was criticized as underwhelming, and the timing—launching in the middle of a pandemic when people were staying at home—couldn’t have been worse for a mobile-first platform. Just six months after its launch, Quibi announced it was shutting down in October 2020, having burned through most of its $1.75 billion.

Why It Went Bust Overnight: Quibi misread the market, creating a product nobody wanted or needed, especially during a pandemic. Its high-budget content and lack of audience led to a rapid downfall.

7. Fab.com: From Unicorn to Bust

Fab.com started as a flash sales site for quirky, design-forward products. It gained massive popularity after pivoting to e-commerce in 2011 and quickly raised $336 million in funding. At its peak, Fab was valued at $1 billion, and it seemed poised to become the next big thing in online retail.

However, the company expanded too quickly, acquiring other companies and moving into international markets before solidifying its core business. As sales stagnated and costs ballooned, Fab began bleeding cash. By 2015, the company sold itself for a fraction of its former value, and it effectively ceased operations.

Why It Went Bust Overnight: Fab grew too fast without a sustainable business model, and when sales didn’t meet expectations, it couldn’t keep up with its high costs and ambitions.

Summary: Startups With Big Dreams and Even Bigger Failures

Each of these companies promised to change their respective industries with bold, innovative ideas. From transforming juice-making and movie-watching to disrupting healthcare and e-commerce, these startups attracted millions in venture capital and media attention, only to crash in spectacular fashion. Their quick rises and even quicker falls show just how volatile the startup world can be.

Conclusion: The Fine Line Between Disruption and Disaster

While some startups disrupt industries and become household names, many others find themselves crashing under the weight of flawed business models, overambitious expansions, or outright deception. The stories of Juicero, MoviePass, Theranos, and others are reminders that no amount of hype or venture capital can make up for a bad product or unsustainable business model. In the fast-paced world of startups, the difference between success and failure can come down to how quickly companies realize their limitations—or how long they can keep the illusion alive before everything falls apart.