Insufficient profit. Had a startup based around an depreciating asset that we held and rented out. Costs recovered in three years and then two years of profits before asset was sold for the last bit of money.
We were profitable on each individual asset we had to the tune of about 6.5% return after five years. Not profitable as a company though. Costs were fixed though (about 80 people in an office) so if we could have gotten more capital to buy more assets we would have become profitable. No one wanted to wait five years to get l 6.5% back in the midst of a bull market. So we failed to raise and died.
We were profitable on each individual asset we had to the tune of about 6.5% return after five years. Not profitable as a company though. Costs were fixed though (about 80 people in an office) so if we could have gotten more capital to buy more assets we would have become profitable. No one wanted to wait five years to get l 6.5% back in the midst of a bull market. So we failed to raise and died.