What Happened to Driver & Why Did It Fail?

Driver was a startup that aimed to connect cancer patients with clinical trials through an innovative app. Founded in 2015 by Harvard alumni, it quickly gained high-profile backing and partnerships. However, despite its promising start, Driver shut down in 2018 due to financial struggles and an unsustainable business model.

What Was Driver?

Driver's main product was an app designed to match cancer patients with clinical trials, incorporating tumor sequencing and a clinical trial navigation tool. Its unique value proposition lay in simplifying access to cutting-edge treatments. Notable achievements included financial backing from Li Ka-shing and partnerships with top cancer centers like the Mayo Clinic.

What Happened to Driver?

The story of Driver's rise and fall is a compelling narrative of ambition, innovation, and unforeseen challenges:

• Initial Ambition and Vision: Driver was founded in May 2015 with the goal of connecting cancer patients to clinical trials through a sophisticated app. The company aimed to solve a critical problem in oncology by leveraging technology to streamline access to cutting-edge treatments.
• High-Profile Backing: The startup quickly attracted significant financial backing, including investments from Li Ka-shing, one of the world's wealthiest individuals. Partnerships with the National Cancer Institute and over 30 cancer centers further validated its potential.
• Technological Innovations: Driver developed automated machines to analyze tumor samples and created a clinical trial navigation app. These technological advancements were designed to simplify the process for both patients and clinicians, making it easier to find suitable clinical trials.
• Financial Struggles: Despite its promising start, Driver struggled to secure enough paying customers and lucrative deals with insurers, employers, and drug companies. The direct-to-consumer model, which charged patients $3,000 upfront plus a $20 monthly fee, did not generate sufficient revenue.
• Closure and Reflection: On October 16, 2018, Driver shut down after running out of money, leading to the layoff of all 85 employees. Co-founder Dr. William Polkinghorn later expressed regret over not prioritizing revenue streams earlier, highlighting the challenges of balancing innovation with financial sustainability.

When Did Driver Shut Down?

Driver shut down on October 16, 2018, due to financial difficulties. Despite having financial backing and partnerships with major cancer centers, the company was unable to secure additional funding and ran out of money.

Why Did Driver Shut Down?

1. Ran out of money:

   Driver ceased operations on October 16, 2018, after exhausting its financial resources. Despite having significant backing from investors like Li Ka-shing, the company could not secure additional funding. Dr. William Polkinghorn, the CEO, admitted, “We ran out of money,” highlighting the critical financial mismanagement.

2. Failed to secure customers:

   Driver's direct-to-consumer model, which charged cancer patients $3,000 upfront plus a $20 monthly fee, did not attract enough paying customers. Although hundreds of patients tried the app for free, very few converted to paying users, leading to insufficient revenue generation.

3. Unsuccessful partnerships:

   The company struggled to finalize lucrative deals with insurers, employers, and drug companies. These partnerships were crucial for sustaining the business, but Driver failed to convince these stakeholders to invest, further exacerbating its financial woes.

4. Revenue generation delay:

   Driver focused heavily on building a robust solution rather than generating revenue early on. Dr. Polkinghorn reflected, “We needed to bring on revenue a lot sooner than we did,” indicating that the company’s priorities were misaligned with its financial needs.

5. High operational costs:

   Investing heavily in both hardware and software, including automated machines for tumor analysis, led to high operational costs. These expenses, combined with the lack of immediate revenue, created an unsustainable financial situation for the startup.

Lessons Learned from Driver's Failure

• Prioritize Revenue Early: Ensure a clear path to revenue from the start to avoid financial pitfalls.
• Understand Your Market: Thoroughly research and validate your target market to ensure demand for your product.
• Secure Strong Partnerships: Build and maintain strategic partnerships to bolster credibility and financial stability.
• Manage Operational Costs: Keep operational expenses in check to maintain financial health and sustainability.
• Adapt Quickly: Be prepared to pivot your business model based on market feedback and financial realities.
• Focus on Customer Acquisition: Develop effective strategies to convert free users into paying customers.
• Balance Innovation with Practicality: Innovate while keeping an eye on practical, revenue-generating opportunities.

We Shut Down Startups

Driver's story is a stark reminder of how quickly a promising startup can face insurmountable challenges. If you're in a similar situation, Sunset can help you navigate the complexities of winding down your business.

Sunset takes care of all the legal, tax, and operational burdens, allowing you to avoid penalties and reduce liabilities. Book a demo today to move on to your next venture with peace of mind.