// startup autopsy

LaunchBit

The email ad network that couldn't fill both sides of the marketplace.

marketfitAcqui-hire

Fatal mistake: LaunchBit attempted to build a niche email advertising marketplace without securing enough supply-side inventory before pitching advertisers, causing a chicken-and-egg stalemate.

Founded	2011
Closed	2014
Country	USA
Sector	Media

50%

Key Events Timeline

2011-01-01

FOUNDING

LaunchBit founded by Elizabeth Yin to build an email advertising network for tech newsletters.

2012-06-01

FUNDING

Raised $0.96M in seed funding to grow the ad marketplace platform.

2013-09-01

PIVOT

Attempted to broaden publisher base beyond tech newsletters to increase ad inventory but traction remained limited.

2014-06-01

SHUTDOWN

LaunchBit acqui-hired; founder Elizabeth Yin joined 500 Startups as an investor.

Full Analysis

Analyst plan

Documented cause

LaunchBit was a media startup that operated an email ad network targeting tech newsletters. The company built a two-sided marketplace designed to connect advertisers with publishers in the newsletter space. How...

ever, the startup struggled with a fundamental marketplace scaling problem: it could not simultaneously grow both sides of the network to critical mass. On one side, LaunchBit faced challenges in attr

Verified lesson

“...”

Unlock full lesson →

€1.3M

Peak valuation

HypeCycle · MoatType · ResearchTags

LaunchBit raised €0.96M before launchbit attempted to build a niche email advertising marketplace without securing enough supply-side inventory before pitching advertisers, causing a chicken-and-egg stalemate. ended it. See the documented cause, verified lesson and all failure signals.

Unlock full analysis →Create free account

See all plans·Analyst plan — €149/mo

Key Events Timeline

Documented cause

Verified lesson

Similar patterns