What Happened To Brodmann17 & Why Did It Fail?

Brodmann17 was an Israeli startup specializing in computer vision technology for advanced driver assistance systems. Founded in 2016, it developed lightweight, software-based solutions for low-end processors. Despite initial success and significant funding, the company struggled to secure further investment and address diversified market demands, leading to its closure in 2022.

What Was Brodmann17?

Brodmann17's main product was advanced driver assistance systems (ADAS) using deep learning-based computer vision technology. Their unique value proposition lay in their "lightweight" software that ran on low-end processors, making it cost-effective and efficient. Notably, they raised $11 million in Series A funding and had customers in production.

What Happened to Brodmann17?

The story of Brodmann17 is a compelling narrative of innovation, market challenges, and eventual closure:

• Initial Market Challenges: Brodmann17 applied its technology to various applications such as blind-spot wing cameras, surround and rear cameras, video telematics, and two-wheelers. The company faced a diversified demand in the market and needed more time to establish itself.
• Funding Struggles: Despite raising $11 million in Series A funding, Brodmann17 struggled to secure new investments. The market was hesitant, waiting for more significant developments before committing additional funds.
• Innovative Technology: Brodmann17 developed deep learning-based computer vision technology that was not reliant on bulky hardware. This "lightweight" software could run on low-end processors, making it a cost-effective solution for advanced driver assistance systems.
• Operational and Financial Difficulties: The company operated with a lean team of fewer than 30 people but could not sustain operations without further financial support. This led to the eventual decision to shut down the company.
• Impact on Stakeholders: The liquidation of Brodmann17 affected its employees, investors, and partners. Despite the shutdown, the CEO expressed hope that their innovations would continue to influence the market and contribute to safer mobility solutions.

When Did Brodmann17 Shut Down?

Brodmann17 shut down in the first week of December 2022. The closure was reported on December 9, 2022, by TechCrunch and confirmed on December 11, 2022, by Ctech.

Why Did Brodmann17 Shut Down?

1. Funding Challenges:

   Despite raising $11 million in Series A funding, Brodmann17 struggled to secure additional investments. CEO Adi Pinhas noted that the market was hesitant, with investors waiting for more significant developments before committing further funds. This financial instability ultimately hindered their ability to sustain operations.

2. Market Competition:

   Brodmann17 faced stiff competition from established players like Mobileye. Their innovative technology, while promising, could not gain a significant foothold in a market dominated by larger, more resourceful competitors. This made it difficult for them to attract the necessary attention and investment.

3. Acquisition Offers Fell Through:

   Several acquisition offers were on the table, but they fell through due to timing issues. These missed opportunities could have provided the financial lifeline Brodmann17 needed. The inability to finalize these deals left the company without the necessary resources to continue.

4. Diversified Market Demand:

   The demand for Brodmann17's technology was more diversified than anticipated. CEO Adi Pinhas mentioned that the company needed more time to address these varied market needs. This diversification stretched their resources thin and delayed their ability to bring products to the mass market.

5. Broader Tech Crisis:

   The broader tech crisis of 2022 also played a role in Brodmann17's downfall. The economic downturn and shifting market conditions made it even more challenging to secure funding and maintain operations. This external pressure compounded their existing financial and operational difficulties.

Lessons Learned from Brodmann17's Failure

• Secure Diverse Funding Sources: Relying on a single funding round can be risky. Diversify your funding sources to ensure financial stability.
• Understand Market Dynamics: Thoroughly research market demands and competition to better position your product and attract investment.
• Adapt to Market Needs: Flexibility in addressing diversified market demands can help in gaining a competitive edge and meeting customer expectations.
• Timing is Crucial: Missed acquisition opportunities can be detrimental. Act swiftly and strategically when potential deals arise.
• Prepare for Economic Downturns: Economic crises can impact funding and operations. Have contingency plans to navigate through financial uncertainties.
• Build a Strong Network: Cultivate relationships with investors, partners, and industry experts to gain support and insights for your startup.
• Focus on Core Strengths: Avoid spreading resources too thin. Concentrate on your core competencies to deliver high-quality products.
• Innovate Continuously: Stay ahead of the competition by continuously innovating and improving your technology and offerings.

We Shut Down Startups

Brodmann17's story is a stark reminder of the challenges startups face, from securing funding to navigating market demands. When a startup like Brodmann17 reaches the end of its journey, the complexities of winding down can be overwhelming.

This is where Sunset steps in, handling all the legal, tax, and operational burdens, allowing you to avoid penalties and reduce liabilities. Ready to move on to what's next? Book a demo with Sunset today.