// STARTUP COMPARISON
Redbooth Chile vs Scytl
Redbooth Chile failed in 2019 due to Competition. Scytl failed in 2020 due to Ran Out of Money. Different causes, different sectors, different eras — but the same simulation outcome.
| METRIC | 🔥 Redbooth Chile | 🔥 Scytl |
|---|---|---|
| Sector | SaaS | SaaS |
| Country | Chile | Spain |
| Founded | 2012 | 2001 |
| Died | 2019 | 2020 |
| Raised | $30M | $100M |
| Peak | 5M users globally | Elections in 42+ countries |
| Primary Cause | Competition | Ran Out of Money |
// WHY EACH FAILED
🔥 Redbooth Chile
Competition
Redbooth (originally Teambox, founded in Barcelona with Chilean co-founders) grew to 5M global users. The product-market fit eroded as Slack captured real-time collaboration, Asana dominated task management, and Trello won visual boards. Redbooth was caught in the middle without a defensible position. The company was acquired by Planview in 2019 at a fraction of its peak valuation.
// LESSON
Being second in three categories is worse than being first in one. In collaboration tools, users choose the category winner in each paradigm, not the most feature-complete tool. Specialize or be acquired.
Being second in three categories is worse than being first in one. In collaboration tools, users choose the category winner in each paradigm, not the most feature-complete tool. Specialize or be acquired.
🔥 Scytl
Ran Out of Money
Scytl was the world's leading provider of election technology, having processed votes in over 42 countries. It raised $100M from Vulcan Capital and others. In 2020 COVID-19 caused the cancellation or postponement of hundreds of elections globally — Scytl's entire revenue base. Unable to survive the collapse, Scytl filed for insolvency in June 2020 and was acquired by Paragon Group.
// LESSON
Market leadership in an event-driven market is concentrated risk, not a moat. When the event cycle pauses globally, your entire revenue base pauses with it. Diversify revenue streams before a black swan can.
Market leadership in an event-driven market is concentrated risk, not a moat. When the event cycle pauses globally, your entire revenue base pauses with it. Diversify revenue streams before a black swan can.
// EXPLORE FURTHER