Why was the start-up "Everpix" which was said to be "one of the world's best photo applications" why was it shut down?

Storage service that allows you to save and share pictures free of charge unlimitedEverpixAnnounced that it will close on December 15, 2013, photograph data can not be uploaded, it will enter read-only mode where only reading and viewing can be done, refund processing will be started for users using for a fee , It is now possible to download all of the photo data on the server. "One of the world's best photo applicationsIt is said that it was sailing smoothly when seen from the end, but why was it supposed to be closed due to what caused it?

Out of the picture: why the world's best photo startup is going out of business | The Verge
http://www.theverge.com/2013/11/5/5039216/everpix-life-and-death-inside-the-worlds-best-photo-startup

Everpix Shutdown FAQ: Everpix Help
https://support.everpix.com/entries/22586374

◆ concept


Everpix began with the concept of a 34-year-old French entrepreneur, Pierre Oliver Latour. He is the first company to launch "PixelShox StudioWe sold it to Apple in 2003, and the company later said "Quartz ComposerYou will be making.

Mr. Kevin Quinessen and Mr. Latour who worked at Apple met at this time and later Mr. Quinnessen to join the Everpix concept as CTO.

In 2009, two people left Apple and issued image sharing software "Cooliris(Cool Iris) "company, and summarized the establishment of the Japanese branch office of Cooliris. When traveling in Asia, Mr. Latour noticed "How one person shoots photos" "How difficult it is to save all the photos". In August 2011 "33 cube Inc."Was established and the concept of Everpix began from here.

◆ Startup


Collecting excellent team members, the idea of ​​Everpix,TechCrunch DisruptParticipate in. Easy operation and excellent design were evaluated, and we have made a good start.

Everpix, Apple's former representative director Bertrand Sarley,500 StartupsRepresentative Director Dave McClure, Mr. Picasa co-founder Michael Haaf,Index VenturesCompanyStrive CapitalWe were able to collect a total of 1.8 million dollars (about 177 million yen) from the company.

◆ Success and failure


Founder who thought that we would partner with Facebook and Dropbox to win users, thought "I want to succeed in their own way", was committed to completing Everpix 1.0, Released as an unlimited online photo storage service for $ 4.99 (about 490 yen) or 49 dollars a year (about 4800 yen). We attracted users with the simplicity of the operation of just connecting the PC and the smartphone and the "flashback" function which sends us the same day's photo of the same day via e-mail.

However, the time taken to reach here is one year and a half, and Mr. Latour recalls that "It took too long to draw attention." While adhering to product function development, care is lacking in 'business development', which is the most important entrepreneur. In addition, although we changed the system to require an account to download publicly available photos aiming at increasing the number of registered users, this is a definite failure, and rival photo apps cost millions While acquiring new users of Everpix, fewer than 19,000 new users. Everpix became almost unwritten in May 2013 in a situation where all funds are spent on development and can not be advertised.

◆ Series A crisis


Investors refer to the start-up companies that have just started their business to invest in the planning and development of products and related technologiesSeries A (Series A round)I call it. Investors will invest about 100 thousand dollars (about 10 million yen) with expectations, because startup companies sometimes achieve great success over the course of time, but truly one million dollars (about If the number of projects goes beyond 100 million yen, the investors' eyes become more strict and the number of enterprises dropping out will increase.

Investment volume of Series A as a whole is at a steady level, but investment target called seed has increased dramatically in recent years, and investors also feel that the risk is increasing It is in a state of being pulled one step. Therefore, this round is currently called "Series A Crunch (Series A Crisis)", but Everpix is ​​about to jump in the middle.

Thanks to Mr. Latour 's background in the Apple era and network of people in the age, I could meet with investors, and as I talked about it, the response to the product was very good, but the mail arriving under Mr. Latour "In today's era, I doubt if I can make a business model that will generate revenue of 1 million dollars (about 100 million yen) with a free photo application" "I do not feel the possibility of becoming a 100 million dollar (about 98.1 billion yen) company Only things like.

Index Ventures, which invested 500 thousand dollars (about 50 million yen) in the seed round which is the preliminary stage of the series A round, has refused investment in Series A round.

◆ Closure


Everpix 's iOS app has received a high score of 4.5 with more than 1000 reviews, but he did not see their position in the industry. The founder acknowledged that he made a mistake that "it took too much time to develop products," "lack of consideration for growth and distribution" and "that the market entry was too late".

According to Everpix's net income announcement in the above figure, the total amount of funds collected by the investment (Funds raised) is the sum of 1.8 million dollars (about 180 million yen) earned as seed funds + 500 thousand dollars (About 50 million yen) to total 2.3 million dollars (230 million yen). The total subscription revenue (Subscription revenue) for paid users is 250 thousand 4060 dollars 57 cents (about 25 million yen), and we earn a total of 2,554,060 dollars 57 cents (about 255 million yen).

Total conslution and legal fee is 56,555,575 dollars 65 cents (about 56 million yen), office rental (Total Office Expenses) is 127,850 dollars 87 cents (about 1264 million yen) Total Operating Costs is 369,244 dollars 64 cents, Total Salaries is 116,871 dollars 45 cents (about 115 million yen), salary (Total Payroll) is 1,290 thousand Total Personnel Cost was 881 dollar 67 cents (about 130 million yen), the total expenditure was 4,144,154 dollars 47 cents (about 4 85 million yen).

The final balance is minus 2,294,818 dollars and 17 cents (about 223 million yen). It is minus 2,386,33 dollars 9 cents (about 233 million yen) when calculating with only the numbers in the table, so there are some differences, but the cause is unknown. In any case, Everpix, which seemed to be successful at first glance, gave huge losses and it turns out that closing was a compelling choice.