# Springpad (2008 – 2014)

- URL: https://girisimcikafasi.com/en/startup-graveyard/springpad/
- Sector: Consumer apps
- Country: United States
- Total funding: $7 million
- Cause of closure: Business model failed

## What did it do?

Springpad was a free personal organisation app that let users gather the content they came across online, their notes and their to-dos in one place and arrange them into collections. Developed by Boston-based Spring Partners, the service ran on a website and mobile apps.

## Why did it shut down?

Springpad grew its user numbers but could not turn its free model into revenue. With total investment of only around $7 million, the company failed to build a distinctive identity next to Evernote and its more than 100 million users. In August 2013 Jacqueline Hampton, formerly of Time Inc., was brought in as CEO, and content partnerships with publishers were tried. Unable to raise a Series B, the company announced on 23 May 2014 that it would shut down, and the service ended on 25 June 2014.

## The story

Springpad went live in November 2008, at a time when phones and computers were turning into notebooks. A product of Spring Partners in Boston's Charlestown neighbourhood, the app was the work of co-founders Jeff Janer and Jeff Chow. The idea was simple: users would gather the content they came across online, their notes and their to-dos in a single place and arrange them into collections.

The product was well liked. According to figures Janer gave in November 2013, Springpad had reached around 5 million registered users. In 2013 the company went through a Pinterest-inspired redesign, and in August 2013 it brought in Jacqueline Hampton, Time Inc.'s vice president of corporate development, as CEO. Hampton aimed to turn saved content into projects and build partnerships with publishers such as Real Simple.

But Springpad faced two big obstacles. First, in the same space there was a far better-funded rival in Evernote, which had passed 100 million users. Second, the free product had no serious revenue model. The company had raised around $7 million in total and could not close a Series B.

On 23 May 2014 Springpad announced it would shut down on 25 June. At the time of closure more than 400,000 people were actively using the service. The company offered users the option to export their data or move it directly into their Evernote accounts. During the shutdown, co-founder Jeff Chow and four engineers joined Google.

Jeff Janer later summed it up by saying they had built a very good product but had not built a business. Springpad's story is a reminder that user affection alone does not keep a company alive.

## Lessons

- In a free consumer product, do not leave the revenue model until after growth; even 5 million registered users will not carry a company if there is no way to make money.
- Define a clear point of differentiation for a product that does the same job as the market leader; otherwise users and investors alike will see you as an alternative to the leader.
- Prepare a shutdown and data-migration plan in advance in case the next round does not come; Springpad offering users export and transfer to Evernote preserved trust.

## Sources

- [Springpad](https://en.wikipedia.org/wiki/Springpad)
- [Note Taking Service Springpad Is Closing Down June 25th, Data Export Tool Available Soon](https://www.androidpolice.com/2014/05/23/note-taking-service-springpad-is-closing-down-june-25th-data-export-tool-available-soon/)
- [RIP Springpad. We will miss you](https://www.techtimes.com/articles/7463/20140523/evernote-rival-springpad-shutting-down.htm)
- [Springpad's New CEO Hails from TIME](https://siliconangle.com/2013/08/13/springpads-new-ceo-hails-from-time-her-2-pronged-strategy-to-mash-old-new-school-media/)