// startup autopsy

AristaSoft Corporation

Dot-com era enterprise software casualty buried by the crash

timingSilent Shutdown

Quiet closure with no public announcement · Fatal mistake: AristaSoft raised $30M based on dot-com era optimism without securing enterprise customers, leaving it fully exposed when the 2000 market crash eliminated its funding lifeline.

Founded	1999
Closed	2002
Country	USA
Sector	Saas

50%

Key Events Timeline

1999-01-01

FOUNDING

AristaSoft founded in the USA to build enterprise software solutions during peak dot-com optimism.

1999-06-01

FUNDING

Raises $30M in funding at dot-com peak valuation, enabling rapid hiring and infrastructure buildout.

2000-03-01

LAYOFF

NASDAQ crashes; dot-com bubble bursts, eliminating investor appetite and enterprise IT budgets.

2001-01-01

LAYOFF

Customer pipeline dries up; company begins significant layoffs to extend runway.

2002-01-01

SHUTDOWN

AristaSoft ceases operations, unable to raise follow-on funding or achieve commercial revenue.

Full Analysis

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Documented cause

AristaSoft Corporation raised $30 million in 1999 at the peak of the dot-com bubble to develop enterprise software solutions. The startup's failure was primarily driven by macroeconomic collapse rather than fun...

damental product or business model issues. Following the dot-com market crash in 2000-2001, the startup's customer acquisition pipeline dried up as potential enterprise clients halted software spendin

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€75M

Peak valuation

HypeCycle · MoatType · ResearchTags

AristaSoft Corporation raised €30M before aristasoft raised $30m based on dot-com era optimism without securing enterprise customers, leaving it fully exposed when the 2000 market crash eliminated its funding lifeline. ended it. See the documented cause, verified lesson and all failure signals.

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Key Events Timeline

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