// STARTUP COMPARISON
NotCo (2023 crisis) vs MoviePass
NotCo (2023 crisis) failed in 2023 due to Unit Economics. MoviePass failed in 2019 due to Unit Economics. Both failed for the same reason — Unit Economics.
| METRIC | 🔥 NotCo (2023 crisis) | 🔥 MoviePass |
|---|---|---|
| Sector | Consumer | Consumer |
| Country | Chile | USA |
| Founded | 2015 | 2011 |
| Died | 2023 | 2019 |
| Raised | $350M | $68M |
| Peak | $1.5B valuation | 3M subscribers |
| Primary Cause | Unit Economics | Unit Economics |
// WHY EACH FAILED
🔥 NotCo (2023 crisis)
Unit Economics
NotCo, Chile's first and most prominent foodtech unicorn, used AI to create plant-based versions of animal products. It raised $350M and reached a $1.5B valuation. In 2023 the plant-based food category globally faced a sharp consumer demand decline — Beyond Meat's stock fell 80%. NotCo laid off over 30% of its workforce in 2023, cut SKUs, and exited several markets to focus on profitability.
// LESSON
Category demand is not in your control. You can build the best plant-based burger on earth — if consumers decide they'd rather have a real burger, no AI fixes the demand problem. Category bets require category timing bets.
Category demand is not in your control. You can build the best plant-based burger on earth — if consumers decide they'd rather have a real burger, no AI fixes the demand problem. Category bets require category timing bets.
🔥 MoviePass
Unit Economics
MoviePass charged $9.99/month while paying full theater ticket prices per visit. Heavy users went to movies daily. At 3M subscribers the company burned $40M/month and needed multiple emergency capital raises. The service collapsed in 2019 after deactivating subscriber cards mid-screening to conserve cash.
// LESSON
Subsidizing consumption is not a business model. If your price is below cost on transaction one, no scale ever fixes it. Volume amplifies the problem.
Subsidizing consumption is not a business model. If your price is below cost on transaction one, no scale ever fixes it. Volume amplifies the problem.
// EXPLORE FURTHER