Fatal mistake: Venezuela hyperinflation (2018: 1,000,000% annual). Power cuts 8-12 hours daily in 2019 (Corpoelec grid failure). Internet penetration fell from 65% to 40% by 2019 due to infrastructure degradation. USD-denominated SaaS impossible for Venezuelan companies. Most target school clients migrated to Colombia and Peru.
Evaluating only EdTechVE’s profile at its peak — without knowing the outcome — the model ranked Macro / political as the #1 likely cause. That’s exactly how it died.
Key Events Timeline
FOUNDING
CRISIS
CRISIS
SHUTDOWN
Full Analysis
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Documented cause
EdTechVE built edtech in Venezuela. 1,000,000% inflation. 12-hour power cuts. Internet penetration fell 25 points. School families migrated. Market exit.
Lesson
“Venezuela edtech must be delivered via offline-first mobile apps with weekly sync cycles — building for 24/7 internet connectivity in a country with 8-hour daily power cuts is building for the wrong infrastructure.”
Failure anatomy
Collapse type
Market Exit
📉 MEDIUM
Hype cycle
None
Moat type
Technology
Fatal mistake
Venezuela hyperinflation (2018: 1,000,000% annual). Power cuts 8-12 hours daily in 2019 (Corpoelec grid failure). Internet penetration fell from 65% to 40% by 2019 due to infrastructure degradation. USD-denominated SaaS impossible for Venezuelan companies. Most target school clients migrated to Colombia and Peru.