// startup autopsy
Figure Eight (CrowdFlower)
Pioneer of AI data labeling that got squeezed between Amazon and Silicon Valley's hottest startup.
competitionFire Sale
Distressed acquisition below last-round valuation
| Founded | 2009 |
|---|---|
| Closed | 2019 |
| Country | USA |
| Sector | Marketplace |
| Founder | Lukas Biewald |
// the model, blind
Evaluating only Figure Eight (CrowdFlower)’s profile at its peak — without knowing the outcome — the model ranked Acquisition gone wrong as the #1 likely cause. Documented cause: Competition.
Key Events Timeline
FOUNDING
Lukas Biewald founds CrowdFlower in San Francisco as a crowdsourcing marketplace for data annotation and microtask work.
FUNDING
Raises $25M Series C; pivots to focus on AI training data labeling as machine learning market explodes.
PIVOT
Rebrands from CrowdFlower to Figure Eight, positioning as AI-focused platform; Scale AI raises $18M in same year with superior automation.
ACQUISITION ATTEMPT
Appen acquires Figure Eight for $300M in March 2019; brand and independent operations discontinued by end of 2019.