Evaluating only Floodmatics’s profile at its peak — without knowing the outcome — the model ranked Unit economics as the #1 likely cause. That’s exactly how it died.
Key Events Timeline
FOUNDING
Floodmatics founded in Austin, TX by Brian Hartwell to deploy river-basin flood sensors.
FUNDING
Raised $8.2M Series A led by Valor Equity Partners to scale IoT hardware deployment.
Company shut down, 34 employees laid off, assets sold to regional utility consortium.
Full Analysis
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Documented cause
Floodmatics raised $8.2M in 2021 led by Valor Equity to deploy IoT flood sensors across US river basins. Hardware unit costs ballooned 3x post-COVID, and their FEMA data-sharing contract worth $4.1M was cancelled in March 2023 due to procurement irregularities. CEO Brian Hartwell resigned in June 2023. The company shut down in August 2023 with 34 employees laid off.
Lesson
“Never let a single government contract represent over 50% of projected revenue; diversify early.”