YouTube Icon

Postmortem of a Venture-backed Startup, Lessons Learned from the rise and fall of Sonar

Postmortem of a Venture-backed Startup, Lessons Learned from the rise and fall of Sonar

For those unexpected, Sonar Media Inc. Become a mobile app created to assist make the sector a friendlier vicinity. Our cell app buzzed in your pocket when pals had been near and ushered in a brand new wave of “Ambient Social Networking” corporations. Downloaded via millions of people all over the world, Sonar changed into promoted by Apple and Google in a hundred+ nations, received numerous awards together with runner-up at TechCrunch Disrupt and Ad:Tech Best Mobile Startup, raised nearly $2,000,000 from outstanding angels and VCs, and was featured on more than three hundred courses which include the New York Times, CNN, CNBC, TechCrunch, and TIME.

And yet, we failed.

We did lots of thing right and lots of factors incorrect at Sonar. Below I do my nice to proportion a few of our lessons found out.

The Search For Product/Market Fit

“Make some thing human beings want.” —Paul Graham

Listening to your users: False positives

We launched Sonar with Facebook, Twitter, and Foursquare guide. Shortly thereafter, users buffeted us with requests for Linkedin integration. Ostensibly, they wanted to use the app to meet fellow professionals.

Eager to thrill, we rushed to feature Linkedin. The net effect? Nada. My guess is that the people asking were not actual customers, but as an alternative humans that “desired to be” users. We had unsuitable noise for sign.

Lesson found out:

“I might use your product if handiest you had X function” is a risky signal to comply with. Users do their best to anticipate what they want earlier than they’ve visible it however, like marketers, they're frequently wrong.

Enterprise corporations should validate demand by asking customers to put their cash wherein their mouths are. Media and social networking corporations should double down on analytics to locate, observe, and build for real person behavior.

Listening to your users: False negatives

One of the most requested functions was a “map like foursquare” for our test-ins. Instead, we appended a easy “@Sonar” to content that customers shared from our app. Although we had designs for a map, we in no way were given around to building one. We had been too busy constructing the destiny of ambient social networking!

Also Read:- All your day today services at your doorsteps

Mistake. People didn’t just like the bland “@Sonar” textual content string so they stopped sharing updates from Sonar. Their buddies in no way engaged with our updates inside the first place. Facebook noticed this and began hiding our posts. Instead of optimizing for real person conduct, we spent endless whiteboarding periods attempting in vain to design an alternative.

Lesson learned:

You are probable no longer the Steve Jobs of ______.

Removing friction from existing user behaviors (e.G. Checkins) nearly continually has a higher ROI than constructing castles inside the sky (e.G. Hypothesizing about your API). Find all the dead ends/local maxima on your present day merchandise earlier than building new ones!

Growth vs. Engagement

We acquired conflicting advice from plenty of smart humans about that's more critical. We targeted on engagement, which we stepped forward by orders of significance. No one cared.

Lesson found out:

Growth is the most effective component that subjects if you are building a social network. Period. Engagement is excellent but you aren’t even going to get the assembly unless your pinnacle-line numbers attain a sure threshold (which is special for seed vs. Collection A vs. Promoting advertising and marketing).

Things I Wish I Spent Less Time On

“Focus is pronouncing no to 1,000 proper thoughts.”?—?Steve Jobs


I realized the error of my patron acquisition method as I awkwardly made my way through a small Meetup I had just pitched. It became 11pm on a Tuesday, I changed into exhausted and still had actual paintings to do as soon as I got home. Yet there I changed into, in a shitty bar trying no longer to skewer all and sundry with my Sonar sign as I dodged person after man or woman asking me to put in THEIR app.

Lesson Learned:

Events are for studies, enterprise improvement, and hiring; NOT for getting to 10,000,000 downloads.

Brands & Agencies

When MTV, Kraft, Digitas, and so forth reached out to us we weren’t certain what they desired. It took us as a minimum 10 conferences to recognize that, rather than turning in us millions in their clients on a silver platter, they have been preserving tabs on us in order that they may get get admission to to OUR audience if we ever took off!

Lesson Learned:

Be polite, but put off logo and organization “intros” till you’ve built your personal target audience. If you construct it, they may come (and pay).

Corollary: Investors realize this. You sound stupid when you speak about your impending “large deal” with “XYZ brand” that’s going to pressure big consumer acquisition and revenue.

Side tasks

In the winter of 2011, we signed a partnership w/ Wired magazine to demonstrate our era by way of supplying site visitors in their Times Square popup keep with personalized in-save product suggestions.

That “small facet challenge” fee us 6 weeks of improvement and introduced no appreciable gain apart from getting to hang out with the cool human beings at Wired.

Lesson Learned:

You do now not have 20% time. Identify your pinnacle 3 priorities. Throw away numbers two and three.


In the run up to SXSW 2012 whilst the insider media had fabricated Highlight as heir to the throne and some of our greater fair climate investors had written us off, my self assurance become in opposition to the ropes. We reordered our roadmap to hurry out comparable features however were now BEHIND. I placed on my quality courageous face but interior my gut changed into rotting away. I nevertheless take into account wondering at the flight to Austin “fck, we had it, and now we're going to lose it.”

Also Read:- MBBS in Russia Eligibility, Fees and Admission Process

Oops! Highlight never went anywhere however we truely wasted a ton of energy and sleep “responding to the threat” while we ought to had been identifying a way to make our own enterprise work.

Lesson Learned:

Be steady on the wheel. The best way one startup can kill another startup is by means of entering into the alternative’s head and leading them off a cliff.

If you don’t accept as true with me, do this evidence. Are your competition releasing a group of the identical capabilities that you have in your roadmap? Yes? Do you already know what purchasers need*? No? Great, then neither do your competition. Get again to identifying what customers need!

*Hint: If you did, you would have already got traction.

Selling the employer

When the ambient social networking space froze within the spring of 2012, Sonar’s controlling investors determined it changed into time to “turn the asset.” They linked us with a every day offers enterprise searching out “Big Data” solutions. We stopped running at the app and devoted all of our resources to repacking our backend technology to solve BigCo’s troubles. Instead of pairing down prices to extend our dwindling runway, we piled on hires and ramped up our infrastructure.

The every day offers space imploded however we spent nearly nine months, dozens of meetings, and numerous hundred thousand greenbacks “promoting” Sonar right into a employer that nearly went bankrupt.

Lesson Learned:

Companies don’t get offered, they get sold. The pleasant manner to get sold is to build some thing of price. That’s hard to do while you are attempting to promote.


We built Sonar out of an incubator that I helped release in 2010. To be simply clean, the incubator was instrumental to getting Sonar off the ground and helped us notably along the manner. Unfortunately, there are a number of structural issues going through incubators and the operators they hire. I cope with a number of those under.

The decoupling of duty from manipulate created ambiguity and confusion, tension and frustration for all events. From everyday choices such as negotiating an employment settlement to organization defining ones which includes whilst to promote the company, alignment was a consistent venture. Occasionally, we were actually at odds.

Perhaps the most damaging element of the incubator model changed into no longer its ability for hinderance but its facility as a crutch. As a person liable for building and running a organisation that I ultimately didn’t manipulate, it was far too clean to point a finger.

In my opinion, the most tragic instance got here while our incubator sat on a financing that would have rebooted the agency. After almost a month at loggerheads, our could-be traders gave us forty eight hours to “take it or go away it.” In hopes of saving the company, I made an ultimatum: we pass forward collectively or I would should walk away. No one budged, time elapsed, and our term sheet evaporated. I resigned as promised, blaming them for killing my baby.

Lesson Learned:

As John Burroughs stated, “A guy can fail often, however he isn’t a failure till he starts accountable somebody else.” Avoid terrible relationships just like the plague however while you unavoidably locate yourself in a difficult partnership, don’t waste treasured electricity wailing in opposition to it. Make it paintings or pass on quickly.

It’s All About People

“The essence of competitiveness is liberated while we make people consider that what they suppose and do is vital – and then get out in their manner while they do it.”?—?Jack Welch

Be sensible approximately crew constructing

We lost our first could-be hire, a outstanding Google engineer. While we had been debating his settlement, he changed into taking a task some other place. Conversely, we employed any other, tons much less demonstrated, engineer immediately. While he ultimately wasn’t a first rate cultural in shape and we virtually waited too lengthy to part methods, he was instrumental in getting V1 out the door.

Lesson Learned:

If you are an experienced entrepreneur with lots of options, by way of all approach, hold out. For most first time entrepreneurs, holding out risks by no means getting off the ground.

Also Read:- Know Why Android has a Bright Future for Mobile App Development

In the start, hooked up humans possibly won’t work with you. Prove your self by means of finding diamonds in the difficult, like yourself. With their assist, you could stage up your organisation and convince the huge fish to sign up for.

Culture is your cofounder

We built an fantastic group at Sonar. Everyone changed into extremely smart, passionate, committed, and hardworking. We celebrated milestones with tequila. We hung on the seaside. Even whilst times were tough, each person pushed as some distance as they in all likelihood ought to, after which some. I actually have big love for all of my former colleagues and am confident they sense similarly.

That said, our lifestyle become extra of an emergent property than a deliberate choice. Sure, we had brainstorming sessions and posted goals prominently but maximum of our culture we absorbed from the people with whom we had been surrounded ourselves.

Lesson Learned:

Think of culture as a cofounder this is present whilst you are not. You are decisive, communicative, and respectful but its your tradition that facilitates each person recognise how to act when you are out of the room. Give that voice clarity and authority.

The trick is to keep away from hollow words. Since a startup’s tradition final mirrors that of its founder, perhaps the quality element that you could do is work difficult to get clear on who you're. Write that down and proportion it along with your crew. If you’ve been sincere, each action you're taking will give a boost to your values.


“What we fight with is so small, and when we win, it makes us small. What we need is to be defeated, decisively, via successively more matters.”?—?Rainer Maria Rilke thru Tim O’Reilly

Startups don’t die when they run out of cash, they die whilst their founders permit move. I in the end stepped away from Sonar once I came to the realization that, in spite of all that we had invested, all people stood a better threat starting anew. It’s hard to simply accept, however now and again you need to concede a conflict to win the war.

I am indebted to the masses of humans that invested their sweat, cash, love, and/or time into Sonar, be it three years of labor or a informal smartphone call. Special way to my outstanding group, trustworthy advisors & traders, and supportive own family & buddies. Finally, huge shout out to the hundreds of thousands of customers that gave Sonar a shot. Your stories about assembly your boyfriend on Sonar made all of it worthwhile.

We commenced Sonar with a notion that everybody has the capacity to be super and that generation can unlock that potential. My revel in at Sonar has handiest strengthened my conviction. I can’t wait to deliver the entirety I’ve found out to endure on what’s subsequent.

Author Biography.

Editorial Team
Editorial Team

Content Writer

Join Our Newsletter.

Subscribe to CrowdforThink newsletter to get daily update directly deliver into your inbox.

CrowdforGeeks is where lifelong learners come to learn the skills they need, to land the jobs they want, to build the lives they deserve.


CrowdforThink is a leading Indian media and information platform, known for its end-to-end coverage of the Indian startup ecosystem.


Our mission is "Har Koi Dekhe Video, Har Ghar Dekhe Video, Ghar Ghar Dekhe Video" so we Provide videos related to Tutorials, Travel, Technology, Wedding, Cooking, Dance, Festivals, Celebration.

Apna Video Wala

News & Blogs


How Baby Amore Is Bringing Organic, Eco-Friendl...

Founded in 2019, Baby Amore was born out of the need to deliver top class baby care products with...


How Simpl’s BNPL Strategy Is Enabling Higher Co...

The buy-now-pay-later segment has been witnessing an extended increase as new gamers like Amazon,...


How Meghalaya-Based D2C Startup Zizira Is Spici...

D2C emblem Zizira is bringing Meghalayan spices and herbs like Lakadong turmeric and valerian tea...

Top Authors

Lamia Rochdi is the Marketing Manager at Bell Flavors & Fragrances EMEA. A successful family-...

Lamia Rochdi

I’m Mertin Wilson a technician in a camera company and certified expert of different P...

Mertin Wilson

Zakariya has recently joined the PakWheels team as a Content Marketing Executive, shortly after g...

Zakariya Usman

Pankaj Singh is a Senior Digital Marketing Consultant with more than 2 years of experience in SEO...

Pankaj Singh

Our Client Says

WhatsApp Chat with Our Support Team