Evaluating only CloudWeave’s profile at its peak — without knowing the outcome — the model ranked Competition as the #1 likely cause. Documented cause: Unit economics.
Key Events Timeline
FOUNDING
Sarah Nguyen founds CloudWeave in Sydney to orchestrate digital transformation workflows.
FUNDING
Raises AUD $15M from Blackbird Ventures and Square Peg; headcount reaches 70.
LAYOFF
CAC reaches AUD $87K against ACV of AUD $31K; 30 employees laid off in cost-cutting round.
SHUTDOWN
Board votes to wind down; assets sold to local IT services firm for undisclosed sum.
Full Analysis
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Documented cause
CloudWeave raised AUD $15M from Blackbird Ventures and Square Peg to build workflow orchestration tools for digital transformation projects. The platform competed directly with ServiceNow and Microsoft Power Platform without meaningful differentiation. By 2022, average CAC had ballooned to AUD $87,000 against an average ACV of AUD $31,000. Despite CEO Sarah Nguyen's pivot attempts in Q1 2023, the board voted to wind down operations in June 2023.
Lesson
“Unit economics must be validated early; CAC exceeding ACV threefold means the business model is broken.”