Evaluating only Morphix’s profile at its peak — without knowing the outcome — the model ranked Competition as the #1 likely cause. Documented cause: Contagion.
Key Events Timeline
FOUNDING
Jean-Baptiste Leroy and Camille Dumont found Morphix in Paris to automate digital maturity assessments.
FUNDING
Raises €7.5M from Partech and Kima; signs Capgemini as anchor client, representing 68% of ARR.
REGULATORY ACTION
Capgemini terminates contract after building internal tool; revenue drops 70% overnight.
SHUTDOWN
Unable to replace lost ARR; Morphix shuts down quietly, team disperses.
Full Analysis
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Documented cause
Morphix raised €7.5M from Partech and Kima Ventures to build a SaaS platform automating digital maturity assessments for consulting firms. Founders Jean-Baptiste Leroy and Camille Dumont relied on a single anchor client, Capgemini, which accounted for 68% of ARR. When Capgemini built an internal tool and terminated the contract in April 2022, revenue collapsed by 70%. The company failed to replace the lost ARR and shut down in January 2023.
Lesson
“Never let a single client exceed 30% of ARR; customer concentration is an existential single point of failure.”