// STARTUP COMPARISON
Jodel vs MySpace
Jodel failed in 2022 due to Competition. MySpace failed in 2011 due to Competition. Both failed for the same reason — Competition.
| METRIC | 🔥 Jodel | 🔥 MySpace |
|---|---|---|
| Sector | Social | Social |
| Country | Germany | USA |
| Founded | 2014 | 2003 |
| Died | 2022 | 2011 |
| Raised | €30M | Acquired by News Corp $580M |
| Peak | 10M users | $580M acquisition |
| Primary Cause | Competition | Competition |
// WHY EACH FAILED
🔥 Jodel
Competition
Jodel built a location-based anonymous social network popular among German university students. After raising €30M and reaching 10M users, TikTok captured the student entertainment attention and BeReal captured the authentic social sharing niche. Jodel's anonymous local community format lost its differentiation. Unable to raise further funding in the 2022 downturn, the company restructured significantly.
// LESSON
Anonymous local social networks have a geographic moat until global platforms achieve local content at scale. TikTok's For You algorithm creates local content without geographic restriction. When that happens, anonymous local networks have no remaining moat.
Anonymous local social networks have a geographic moat until global platforms achieve local content at scale. TikTok's For You algorithm creates local content without geographic restriction. When that happens, anonymous local networks have no remaining moat.
🔥 MySpace
Competition
MySpace was acquired by News Corp for $580M in 2005. Under corporate ownership the product stagnated while Facebook grew. MySpace failed to enforce quality standards — spam, malware, and cluttered profiles drove users away. Facebook overtook MySpace in 2008. News Corp sold it for $35M in 2011.
// LESSON
Social networks are won on product quality and safety, not just audience size. A network that tolerates spam and malware to maximize ad revenue will lose its audience to one that does not.
Social networks are won on product quality and safety, not just audience size. A network that tolerates spam and malware to maximize ad revenue will lose its audience to one that does not.
// EXPLORE FURTHER