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Why did Everpix Fail?

What Happened to Everpix & Why Did It Fail?

January 25, 2025

Everpix was a photo management service that aimed to simplify the organization and storage of large photo libraries. Founded in 2011, it offered a seamless, automated solution for users. Despite initial success and innovative features, Everpix struggled with funding and competition, leading to its closure in 2013.

What Was Everpix?

Everpix

Everpix's main product was a cloud-based photo storage and organization service. Its unique value proposition lay in its automated, "set it and forget it" approach, which seamlessly organized photos. Notable achievements include raising $1.74 million in funding and being a finalist at TechCrunch Disrupt.

What Happened to Everpix?

The story of Everpix is a compelling tale of innovation, struggle, and eventual closure, marked by several key phases:

  • Founding and Vision: Everpix was founded by Pierre-Olivier Latour and Kevin Quennesson, both former Apple employees, in August 2011. The idea stemmed from Latour's frustration with organizing photos after a vacation, leading to the creation of a service that used algorithms to highlight the best photos.
  • Initial Success: The service was praised for its seamless integration and ease of use, quickly earning positive reviews and a loyal user base. Everpix raised $1.8 million from investors, including Index Ventures and Picasa co-founder Michael Herf.
  • Struggles with Growth: Despite having a great product, Everpix struggled with user growth and failed to attract enough paying customers. The company faced significant financial difficulties, with high operational costs and insufficient revenue.
  • Failed Funding and Acquisition Attempts: Efforts to raise $5 million in a Series A round failed due to investor concerns about the scalability of a subscription-based photo service. Acquisition talks with companies like Facebook and Dropbox did not materialize, and a tentative deal with Path fell through.
  • Closure and Aftermath: The company eventually ran out of money and had to shut down, with the team working for minimum wage in the final days. The emotional and financial toll on the founders and employees was significant, highlighting the harsh realities of startup life.

When Did Everpix Shut Down?

Everpix announced its shutdown on November 5, 2013, due to severe financial difficulties, including an inability to pay a $35,000 bill from Amazon Web Services. Despite having 55,000 users and 6,800 paid subscribers, the company struggled with user growth and failed to secure additional funding or a successful acquisition deal.

Why Did Everpix Shut Down?

  1. Financial Difficulties: Everpix faced severe financial challenges, including an inability to pay a $35,000 bill from Amazon Web Services. Despite having 55,000 users, the revenue generated was insufficient to cover operational costs and employee salaries, leading to a financial crisis that the company couldn't overcome.
  2. Slow User Growth: Although Everpix had a highly praised product, it struggled with user acquisition. The company failed to implement effective growth strategies and marketing efforts in time, resulting in a user base that did not grow quickly enough to sustain the business.
  3. Failed Fundraising: Efforts to raise $5 million in a Series A round were unsuccessful. The "series A crunch" period made it difficult to secure large investments, and existing investors, like Index Ventures, were not confident enough in the business aspects to increase their investment.
  4. Failed Acquisition: A tentative acquisition deal with Path fell through at the last minute. This left Everpix without a crucial lifeline, as other potential acquisition talks with companies like Facebook and Dropbox also did not materialize.
  5. Late Marketing Efforts: The company focused heavily on product development and neglected marketing until it was too late. By the time they realized the importance of marketing and growth strategies, it was already too late to make a significant impact.

Lessons Learned from Everpix's Failure

  • Balance Product and Marketing: Prioritize both product development and marketing efforts to ensure user growth and business sustainability.
  • Secure Financial Stability: Maintain a strong financial plan to cover operational costs and avoid cash flow crises.
  • Effective User Acquisition: Implement robust growth strategies early to build a substantial and loyal user base.
  • Investor Confidence: Build investor trust by demonstrating clear business viability and scalability.
  • Adaptability: Be prepared to pivot and adapt strategies based on market feedback and financial realities.
  • Timely Fundraising: Plan fundraising efforts well in advance to avoid last-minute financial shortfalls.
  • Acquisition Readiness: Be prepared for acquisition opportunities by maintaining strong business fundamentals and clear value propositions.
  • Team Resilience: Foster a resilient team culture to navigate the emotional and financial challenges of startup life.

We Shut Down Startups

Everpix's journey underscores the harsh realities of startup life, where even innovative ideas can falter due to financial and operational challenges. If you're facing similar struggles, Sunset can help you navigate the complexities of winding down your startup.

Sunset takes care of all the legal, tax, and operational burdens, allowing you to avoid penalties and reduce liabilities. Don't let the stress of closure overwhelm you—book a demo today to see how we can assist you in moving on to your next venture.