Been there too. Here is the lesson to learn:
If you got funded and have to pay invoices, employees (including yourself), never hope for more investment. Shrink and - if necessary - finally close your business before (!!!!) you run out of money. This is true for startups, businesses, household budget, pocket money, girlfriends (hrmmm), etc.
Startup is a high risk, the statistical odds are against you. Investors know that. If they see you fail, they will not tell you, they will simply stop to invest (and may be think, you will go on to save their a...). Hope that you may find new investment means, you did not start looking early enough to know the odds.
I (we) were at the same position in 2001 when the internet bubble burst. I am happy to report, that our business needed heavy investment (like yours did) and it became clear to us, that there will be no more investment for internet business in the foreseeable future. So we did shut down with money on the bank, paid our debts, bought out our gadgets from the company and divided the money that we paid for the gadgets among the shareholders (us :o).
Both of us founders saw the startup as a business not as our baby. So we were able to look at it from a kind of outside perspective. This was not the reason why it failed, though, but it lifted us at eye level with the investors.
The way we handled it allowed us to book it as a very interesting experience. We were immediately able to look forward.
But, here is the positive side: You got investments (a lot even), you survived for 2 years, which is great. Now get together with your co-founders in a nice place, drink a bottle or two of good wine and analyze your mistakes.
Sorry to say this now that it is late for you. But next time ...
Startup is a high risk, the statistical odds are against you. Investors know that. If they see you fail, they will not tell you, they will simply stop to invest (and may be think, you will go on to save their a...). Hope that you may find new investment means, you did not start looking early enough to know the odds.
I (we) were at the same position in 2001 when the internet bubble burst. I am happy to report, that our business needed heavy investment (like yours did) and it became clear to us, that there will be no more investment for internet business in the foreseeable future. So we did shut down with money on the bank, paid our debts, bought out our gadgets from the company and divided the money that we paid for the gadgets among the shareholders (us :o). Both of us founders saw the startup as a business not as our baby. So we were able to look at it from a kind of outside perspective. This was not the reason why it failed, though, but it lifted us at eye level with the investors.
The way we handled it allowed us to book it as a very interesting experience. We were immediately able to look forward.
But, here is the positive side: You got investments (a lot even), you survived for 2 years, which is great. Now get together with your co-founders in a nice place, drink a bottle or two of good wine and analyze your mistakes.
Sorry to say this now that it is late for you. But next time ...