Learning from Failure – Premature Scaling

Rewardme was a loyalty program for restaurants and retailers which closed down in mid 2015. The startup was funded and spent a lot of money in trying to acquire customers and scale the business. What made them close shop was that they spent huge amounts of money in acquiring customers without really having a clear business plan and product market fit. Their customer acquisitions costs went through the roof and eventually the startup ran out of funding.

Advice – Cash is king. You need to find the best product market fit before deciding to spend cash on scaling the business.