5 Shocking Company Shutdowns of 2023

In 2023, the business world was shaken by a series of unexpected company shutdowns. These incidents were not only surprising because of the stature of the companies involved but also due to the unforeseen circumstances leading to their closures.  These companies are embedded with stories of challenges, ranging from financial missteps to failing to keep up with evolving market trends.

The demise of these companies highlights the volatile nature of the business world, where even established players are not immune to failure. These shutdowns have had significant impacts, both within their respective industries and on the global economic stage, serving as a cautionary tale about the importance of staying adaptable and proactive in a constantly evolving market. 

The stories of these companies provide valuable lessons for businesses and entrepreneurs alike, emphasizing the need for resilience and strategic foresight in the face of unforeseen challenges. Let’s take a look at the most shocking company shutdowns of the year, exploring the reasons behind their downfall and the impacts they had on the industry and the global market. 

WeWork – Adam Neumann 

In 2023, WeWork, once a high-flying office-sharing firm valued at $47bn, faced severe financial struggles, leading to shocking shutdowns of some of its global sites. The company’s troubles began with a failed public share offering and the departure of its co-founder Adam Neumann, compounded by massive debts and management issues.

The pandemic’s push towards remote work further strained WeWork, forcing it to close unprofitable locations, including a key site near London’s Blackfriars station. Amid renegotiations of leases worldwide and a plummeting share price, WeWork’s future became uncertain, marking a significant turn for one of the most hyped companies in recent years.

Dash – Prince Boakye Boampong 

Dash, a promising Ghanaian fintech startup led by Prince Boakye Boampong, faced a dramatic shutdown. Launched in 2019 with the ambitious goal of connecting mobile money wallets and bank accounts across Africa, Dash struggled to fulfill its vision of simplifying cross-border payments. Despite raising significant funding, including a record-setting $32.8 million seed round, Dash faltered amid allegations of misrepresenting user numbers and financial irregularities. 

An internal audit revealed a significant shortfall in funds, and Boampong was eventually replaced as CEO. The company’s high operational costs and unverified growth claims ultimately led to its downfall, marking a notable closure in the African fintech sector.

54 Gene – Dr Abasi Ene-Obong

The once-promising genomics company 54gene, co-founded by Dr. Abasi Ene-Obong, faced a controversial shutdown this year. Despite raising $45 million to revolutionize African genomics, internal turmoil, and leadership changes, including the replacement of Ene-Obong, led to its downfall. The company, which aimed to address the underrepresentation of African genetic material in global research, struggled with financial mismanagement and legal challenges. 

These issues culminated in the company’s decision to wind down operations and seek buyers for its assets. The closure of 54gene, a significant player in the African health tech sector, raised concerns about the future of similar startups in the region.

Heygo – John Tertan

Heygo, a virtual tour platform founded by John Tertan, ceased operations despite early success and significant venture capital investment. Established in 2020 during the pandemic, Heygo offered a unique solution for travelers and tour guides impacted by global travel restrictions, raising $20 million in funding. However, as the world reopened and travel resumed, the demand for virtual tours plateaued. 

Tertan and investors concluded that the market was too small to justify the continued operation, leading to the shutdown. This closure marked a poignant end to a community-centric platform that connected people globally during an unprecedented time.

Zazuu

In 2023, Zazuu, a London-based fintech company in the African remittance sector, joined the list of significant company shutdowns due to funding difficulties. Despite raising over $2 million and initially showing promise by creating a competitive marketplace for cross-border payments, the company faced operational challenges. 

This shutdown reflects a broader trend in the tech ecosystem, where startups, particularly in Africa, are grappling with funding shortages, leading to a notable increase in company shutdowns. This pattern, highlighted by Zazuu’s closure, emphasizes the volatility and financial challenges in the startup landscape.