// STARTUP COMPARISON
Scytl vs Hopin
Scytl failed in 2020 due to Ran Out of Money. Hopin failed in 2023 due to Bad Timing. Different causes, different sectors, different eras — but the same simulation outcome.
| METRIC | 🔥 Scytl | 🔥 Hopin |
|---|---|---|
| Sector | SaaS | SaaS |
| Country | Spain | USA |
| Founded | 2001 | 2019 |
| Died | 2020 | 2023 |
| Raised | $100M | $1B |
| Peak | Elections in 42+ countries | $7.75B valuation |
| Primary Cause | Ran Out of Money | Bad Timing |
// WHY EACH FAILED
🔥 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.
🔥 Hopin
Bad Timing
Hopin, a virtual events platform, raised $1B and reached $7.75B valuation during COVID when all events moved online. When in-person events returned in 2022, Hopin's core use case evaporated. The company sold its Events product to RingCentral in 2023 for approximately $15M — a 99.8% value destruction from its $7.75B peak. The founding CEO had already stepped down.
// LESSON
COVID-only use cases have COVID-only valuations. Hopin's $7.75B was pricing in a world where in-person events never returned. When building during a macro event, model the post-event scenario before setting valuation. A product that only works during a pandemic has a pandemic-length runway.
COVID-only use cases have COVID-only valuations. Hopin's $7.75B was pricing in a world where in-person events never returned. When building during a macro event, model the post-event scenario before setting valuation. A product that only works during a pandemic has a pandemic-length runway.
// EXPLORE FURTHER