// startup autopsy

FOBO

Fear of better options killed this marketplace before it could scale

marketfitAcqui-hire

Fatal mistake: FOBO failed to solve the marketplace liquidity problem with only $1.6M, unable to reach critical mass on either supply or demand side.

Founded	2012
Closed	2015
Country	USA
Sector	Marketplace

50%

Key Events Timeline

2012-01-01

FOUNDING

FOBO founded in the USA as a peer-to-peer marketplace platform.

2013-06-01

FUNDING

FOBO raises $1.6M to build out its marketplace and grow user base.

2014-03-01

PRODUCT LAUNCH

FOBO expands marketplace features but struggles to achieve two-sided liquidity.

2015-01-01

ACQUISITION ATTEMPT

FOBO is acquired in an acqui-hire deal as marketplace growth stalls.

2015-06-01

SHUTDOWN

FOBO's marketplace ceases operations following the acquisition of its team.

Full Analysis

Analyst plan

Documented cause

FOBO was a peer-to-peer marketplace startup that encountered the classic marketplace chicken-and-egg problem, which ultimately proved insurmountable. The company raised $1.6M in funding but struggled to build s...

ufficient liquidity on both the supply and demand sides—a critical challenge for any two-sided marketplace business model. Without a critical mass of both buyers and sellers, the platform could not ac

Verified lesson

“...”

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€2.9M

Peak valuation

HypeCycle · MoatType · ResearchTags

FOBO raised €1.6M before fobo failed to solve the marketplace liquidity problem with only $1.6m, unable to reach critical mass on either supply or demand side. ended it. See the documented cause, verified lesson and all failure signals.

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