Is collaborative filtering the same as the technology Netflix and Spotify use?

Yes — collaborative filtering is the foundational technique behind modern recommendation systems. NetPerceptions was doing this at commercial scale in 1997-2000, years before it became mainstream. The underlying algorithms have since evolved enormously, but the core "users like you also liked" pattern is the same.

Did any personalisation software company survive from this era?

RichRelevance (founded 2006) and Certona (founded 2004) built successful personalisation businesses for retail by learning from the earlier generation's mistakes — focusing on mid-market retailers who could not build in-house rather than targeting Amazon-tier clients who would inevitably internalise.

← All autopsies

// HALL OF FLAME · STARTUP AUTOPSY

Founded	1996
Closed	2003
Country	USA
Sector	Saas
Total raised	40
Collapse type	Bankruptcy
Founder	Steve Snyder

NetPerceptions

"Built the recommendation engine Amazon used — then Amazon rebuilt it in-house"

$40M

RAISED

—

EMPLOYEES

MONTHS

competitionBankruptcy

// Fatal mistake: Core clients internalised recommendation technology once it became strategically central — no replacement pipeline

Key Events Timeline

1996-01

FOUNDING

NetPerceptions founded

1999-06

PIVOT

Strategic pivot under pressure

2003-06

SHUTDOWN

Bankruptcy: NetPerceptions ceases operations

🔥 Hall of Flame 28%🏆 Hall of Fame 25%

NetPerceptions built collaborative filtering software — the technology that powers "customers who bought this also bought" recommendations.

// full analysis

Full analysis requires the Analyst plan

Documented cause · Market cycle · Competitive moat type · Verified lesson

See Analyst plan →See all plans

€149/mo · or contribute your autopsy for free access →

// YOUR STARTUP DOESN'T HAVE TO END LIKE THIS

UnicornBurn Season 0 opens July 2026. 10,000 founders competing in one world. Your startup fights for the market every Saturday. Most will end up here. Which one are you?

JOIN SEASON 0 →

// THE SAAS GRAVEYARD DOESN'T END HERE

NetPerceptions followed a documented pattern. Identify the same signals in any company before they reach the point of no return.

ANALYSE A COMPANY →MORE SAAS AUTOPSIES →