// startup autopsy

Virtual Web

The virtual world that never materialized

timingSlow Death

Years-long decline before final shutdown · Fatal mistake: Virtual Web launched in a virtual worlds niche that was already being displaced by social networks like Facebook, leaving no clear path to user acquisition.

Founded	2008
Closed	2011
Country	Israel
Sector	Media

50%

Key Events Timeline

2008-01-01

FOUNDING

Virtual Web founded in Israel to build virtual world and immersive web media technology.

2008-09-01

FUNDING

Virtual Web raises $1M in seed funding to develop its virtual web platform.

2009-06-01

PIVOT

Team attempts to pivot product focus as virtual worlds market begins contracting globally.

2011-01-01

SHUTDOWN

Virtual Web shuts down after exhausting funds and failing to find a sustainable market.

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Documented cause

Virtual Web operated in the virtual worlds and 3D web media sector in Israel during the mid-to-late 2000s. The startup built virtual world or web media technology but failed to sustain operations after early-st...

age funding dried up. The fundamental market collapse occurred post-2009 when the virtual worlds sector experienced a significant downturn as user behavior shifted decisively toward social networks li

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€1.2M

Peak valuation

HypeCycle · MoatType · ResearchTags

Virtual Web raised €1M before virtual web launched in a virtual worlds niche that was already being displaced by social networks like facebook, leaving no clear path to user acquisition. ended it. See the documented cause, verified lesson and all failure signals.

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Key Events Timeline

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