// startup autopsy

Starbak

Cloud backup pioneer that backed itself into an acquisition exit.

timingAcqui-hire

Fatal mistake: Starbak entered the cloud backup market before enterprise and SMB buyers were ready to trust off-premise data storage, stalling adoption.

Founded	2003
Closed	2007
Country	USA
Sector	Saas

50%

Key Events Timeline

2003-01-01

FOUNDING

Starbak founded in the USA to provide cloud backup software solutions for businesses.

2005-06-01

FUNDING

Starbak raises $5.5M to build out its backup platform and acquire early SMB customers.

2006-08-01

PRODUCT LAUNCH

Starbak launches updated backup suite but faces slow enterprise adoption due to data sovereignty concerns.

2007-06-01

SHUTDOWN

Starbak is acquired, ending independent operations as the cloud backup market had not yet reached mainstream acceptance.

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Documented cause

Starbak operated in the early cloud backup and storage software market for SMBs around 2006, a sector that was nascent and underdeveloped at the time. The startup faced significant challenges in scaling indepen...

dently within this emerging market segment. Unable to achieve sustainable revenues or establish sufficient market traction on its own, Starbak was ultimately acquired rather than reaching independent

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€9.9M

Peak valuation

HypeCycle · MoatType · ResearchTags

Starbak raised €5.5M before starbak entered the cloud backup market before enterprise and smb buyers were ready to trust off-premise data storage, stalling adoption. ended it. See the documented cause, verified lesson and all failure signals.

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Key Events Timeline

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