Why did Moblyng Fail?

Moblyng was a pioneering company that developed cross-platform HTML5 games for mobile devices, social networks, and the web. Founded in 2006, it initially gained traction with its innovative approach but ultimately succumbed to financial struggles, leading to its shutdown in 2012.

What was Moblyng?

Moblyng developed cross-platform social games using HTML5, allowing seamless play across devices. Their unique value proposition lay in their ability to deliver consistent gaming experiences on multiple platforms. Notably, they raised $17.37 million in funding and attracted investments from Mohr Davidow Ventures, Deep Fork Capital, and Motorola Mobility.

Reasons behind Moblyng's Failure

1. Inadequate Monetization Moblyng struggled to generate sufficient revenue from its games, which ultimately led to its downfall. Despite having a growing user base, the company could not monetize its products effectively. As CEO Stewart Putney stated, "We did not monetize enough to stay in business," highlighting the critical financial shortfall.
2. Poor Timing The company experienced a surge in user growth too late to make a difference. Moblyng's HTML5 games gained traction only after the company had exhausted its financial resources. This delay in audience growth meant that by the time the games were popular, the company had already run out of time and cash.
3. Technological Hurdles HTML5, while promising, presented significant performance issues that affected user experience. Moblyng's games often ran slower compared to those built on more established technologies like Flash. These technological challenges made it difficult for Moblyng to compete effectively in the market.

Impact on Investors and Market

Moblyng's failure had a significant impact on its investors, who had collectively invested $17.4 million. The inability to monetize and the late traction of their HTML5 games meant that investors, including Mohr Davidow Ventures and Deep Fork Capital, faced substantial financial losses. This failure also dampened market confidence in similar HTML5 gaming ventures.

Lessons Learned from Moblyng's Failure

• Monetization is Crucial: Ensure a robust revenue model from the start to avoid financial pitfalls.
• Timing Matters: Align product launch with market readiness to capitalize on user growth effectively.
• Technological Readiness: Choose mature technologies to deliver a seamless user experience and stay competitive.
• Investor Relations: Maintain transparent communication with investors to manage expectations and build trust.
• Adaptability: Be prepared to pivot strategies based on market feedback and technological advancements.

Frequently Asked Questions about Moblyng

When was Moblyng founded?

Moblyng was founded in 2007, initially under the name FlipTrack.

What were some key features of Moblyng's products?

Moblyng's games were cross-platform, using HTML5 to run on mobile devices, social networks, and the web.

Why did Moblyng fail?

Moblyng failed due to insufficient monetization, slow HTML5 game performance, and running out of time and cash.

Looking Ahead

As startup founders navigate the challenging landscape of entrepreneurship, it's crucial to learn from past failures like Moblyng's. To avoid similar pitfalls, consider how Sunset can help manage the legal, tax, and operational burdens of winding down a startup, allowing you to move on swiftly to your next venture.