What was Crowdmix?
Crowdmix was to be a music streaming and sharing platform on which people could listen and talk about their favorite bands. The company released a beta invite-only version of the app for DJ and musicians. The official app was never released.
Why did Crowdmix fail and shut down?
Crowdmix extravagantly spent £14 millions of their investors’ money long before realizing a working product to the public.
The company spent lavishly on parties, flamboyant decorations for its offices and international travel for its staff. No one had a clear vision of the product, and founders kept adding features even before having a consolidated trial version. Moreover, Crowdmix lacked a clear HR policy. This led to overstaffing and consequently contributing to the high running costs, with people being hired to ‘raise the company profile’ rather than because they actually provided a service for the company.
The founding CEO was reportedly forced to leave the company, which was left without any other investor willing to back it up and filed for bankruptcy.
