Here are some of the missteps that led to the premature demise of well-known global brands. Spreading the business model too thinBefore collapsing, UK’s second-largest infrastructure contractor, Carillion, had a turnover of £5.2 billion (Sh726 billion). Six years later, venture capitalists, salivating over the lucrative tech innovation, pushed Theranos’ seed funding to $92 million (Sh9.2 billion). By 2014, Forbes valued Theranos at $9 billion (Sh900 billion), with $700 million (Sh70 billion) coming from venture capitalists. Overstretching the debt registerNakumatt’s debt level is now estimated at Sh30 billion, with Sh15 billion owed to suppliers and Sh8 billion owed to banks.

Source: Standard Digital May 02, 2018 07:39 UTC