December 28, 2013

‘Hipster’ Startup Uses Quirky Name To Get Tracking in The Market But Closes Its Doors After Just 18 Months

When the startup company known as Hipster first hit the market, it found almost instant success from the public, based almost entirely on its name. In fact, the peculiar name, which plays on the social ‘hipster’ trend, not only got thousands of users to sign up for the service without revealing anything about what the company does, but it also got the attention of different news outlets ranging from the Washington Post to Portfolio.com. All of this attention was aimed at a startup that had yet to reveal anything about its actual company, except its name.

 

Two days after launching more than 10,000 people signed up for the site, before the creator, Doug Ludlow revealed a single piece of information about what ‘Hipster” actually does. This all happened in 2011, and since then Hipster has received more than $1 million in funding and finally revealed exactly what the startup is and what it does. The company specializes in creating a real-time, frequently updated visual public records of all of the world’s locations. Those who have signed up for the system will be able to use their iPhone or their Android mobile device to share what they are doing and where they are at through mobile postcards they can send to their friends on the system. Once the postcards are sent, they become part of the platform and permanently attached to the actual location they were sent from. 

 

The Hipster app go a quick start in the market and after just 18 months in the industry, more than 500,000 followers signed on to the platform. However, in 2013, the startup that received so much attention from the public when it first launched, made another surprising move, when it announced that it was closing its doors. As of February 16th, 2013 the startup halted operation. The company sited a number of reasons from the current photo-sharing market to financial reasons and the rate of growth of the community of users as the reason for closing down the operation.

    A startup is a company designed to grow fast. Being newly founded does not in itself make a company a startup. Nor is it necessary for a startup to work on technology, or take venture funding, or have some sort of "exit". The only essential thing is growth. Everything else we associate with startups follows from growth. Paul Graham, Y-Combinator