We always knew we needed Venture Capital investment to give us the marketing budget we needed to acquire enough customers to break-even. Unfortunately in Q4 last year, just at the start of the economic downturn, Venture Capital funding that had been available previously dried up. Where funding used to be available for high-burn high-growth companies it suddenly wasn’t. Businesses were, and still are cutting costs, letting go of employees, and some are unfortunately folding or looking for buyouts at steeply discounted valuations.
So after being on the fundraising trail for months and receiving rejection after rejection, the founding team and I could read the writing on the wall and decided to close down the GreenGrowth investing app.
It was an incredibly tough call to make, the team and I had been working tirelessly on the project for 24 months and it was very sad to let it go. One thing we always made a huge effort to do, was communicate with our shareholders and app users at this time, and all credit to them, they were incredibly supportive which really helped at a tough time.
It can be a cliche but it’s very important to reframe anything that could be seen as a ‘failure’ as a learning opportunity. One of my favourite quotes from Edison is ‘I have not failed 10,000 times—I’ve successfully found 10,000 ways that will not work.’
Now that’s obviously a hyperbolic example and certainly something that is impractical in the business and startup worlds. But you’d be hugely surprised at the amount of businesses that are now hugely successful but once pivoted away from a ‘failure’ of an idea:
- Nokia began as a Finnish Paper mill in 1865.
- Twitter (despite what you think of it now!) started out as a podcast subscription platform.
- Instagram was a location check-in app.
- YouTube was originally a video dating site.
At GreenGrowth, we read the signals, we took feedback and advice onboard and now we have successfully pivoted the company into a B2B SaaS platform that empowers the wealth management industry to make better sustainable investing decisions.
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