Failure Analysis
Haiming died from a lethal combination of regulatory asphyxiation and structural misalignment. The company launched in 2019, the peak of China's consumer internet boom,...
Haiming \China
Haiming was a Chinese consumer-facing platform that attempted to capitalize on China's booming digital economy during 2019-2024. With $120M in private equity backing, the company likely pursued a high-burn growth strategy targeting mass-market adoption in a crowded competitive landscape. The 'Internal' founder designation suggests either a corporate spin-out or management buyout structure, which often creates misaligned incentives and bureaucratic decision-making. Operating during China's regulatory crackdown on tech platforms (2021-2023), Haiming faced unprecedented headwinds including data localization requirements, algorithm disclosure mandates, and shifting government priorities away from consumer internet toward 'hard tech.' The timing was catastrophic—launching just as the golden era of Chinese consumer internet ended. The private equity structure likely imposed aggressive growth targets incompatible with the new regulatory reality, while the internal team lacked the founder-market fit and adaptability to pivot. With $120M burned over 5 years, this represents a classic case of 'fighting the last war'—building a 2015-era growth playbook in a 2020s regulatory environment.
Discover the reason behind the shutdown and the market before & today
Market Analysis
The Chinese consumer internet market of 2019-2024 underwent the most dramatic regulatory transformation in tech history, making it a graveyard for growth-stage startups. In...
Startup Learnings
Regulatory risk is existential risk in China: Any consumer-facing platform must architect for compliance-first from day one, with data localization, content moderation, and algorithm...
Market Potential
China's consumer internet TAM remains massive (1B+ smartphone users, $1.8T digital economy), but the market structure has fundamentally shifted. The 2019-2024 period saw consolidation...
Difficulty
Consumer mobile apps are technically straightforward to build in 2025—modern no-code/low-code platforms, cloud infrastructure, and AI-powered development tools have commoditized the technical stack. What...
Scalability
Consumer platforms in China face severe scalability constraints post-2021. While the technical infrastructure (Alibaba Cloud, Tencent Cloud) enables zero-marginal-cost distribution, regulatory requirements impose linear...
Rebuild & monetization strategy: Resurrect the company
Execution Plan
Phase 2
**Validation (Months 4-6):** Convert 100 power users (exporters shipping $500K+/year) to a paid tier ($299/month) offering automated customs documentation, real-time tariff calculations, and sanctions screening. Integrate with Alibaba Trade Assurance and AliExpress logistics to auto-generate commercial invoices, packing lists, and bills of lading. Achieve $30K MRR with 40%+ gross margins (SaaS economics). Validate that customers will pay for compliance automation and that the data moat (product catalogs, trade lanes, buyer networks) creates 10x switching costs.
Phase 3
**Growth (Months 7-12):** Launch embedded fintech—cross-border payment processing (2.5% take rate on $10M monthly GMV = $250K/month revenue) and trade finance (letters of credit, invoice factoring at 3-8% APR). Partner with Chinese banks (Bank of China, ICBC) and fintech players (Airwallex, PingPong) to offer RMB-denominated trade finance, solving the #1 barrier to BRI expansion (payment risk from buyers in Pakistan, Kenya, Brazil). Expand to 1,000 paying customers, $500K MRR, and achieve unit economics of LTV/CAC > 5x. Secure Series A ($10-15M) from Chinese strategic investors (Alibaba, Tencent, state-backed funds) positioning HexaBridge as critical BRI infrastructure.
Phase 4
**Moat (Months 13-24):** Build the 'operating system for Chinese exporters'—a vertical SaaS platform managing the entire export lifecycle (sourcing, compliance, payments, logistics, buyer CRM). Launch a marketplace connecting Chinese suppliers with pre-vetted BRI buyers (governments, distributors, retailers), taking 1-3% transaction fees on $100M+ annual GMV. Integrate with Chinese customs (Single Window system) and foreign customs (ASEAN Single Window, AfCFTA) to offer real-time shipment tracking and automated duty drawback claims. Achieve $10M ARR, 80%+ gross margins, and become the default infrastructure for China's $500B+ BRI export economy. The moat is regulatory compliance data (10K+ products classified, 150+ country regulations mapped), network effects (buyers and suppliers), and government endorsement (required tool for BRI participation).
Monetization Strategy
HexaBridge operates a multi-layered revenue model optimized for B2B SaaS + fintech + marketplace economics: (1) **SaaS Subscriptions:** $299-2,999/month tiered pricing based on export volume (<$1M, $1-10M, $10M+ annually), generating $5-10M ARR at 1,000 customers with 85% gross margins. (2) **Transaction Fees:** 2.5% take rate on cross-border payments ($100M annual GMV = $2.5M revenue) and 1-3% marketplace fees on supplier-buyer transactions ($200M GMV = $3-6M revenue), with 40-60% gross margins after payment processing and fraud costs. (3) **Financial Services:** Trade finance (letters of credit, invoice factoring) at 3-8% APR on $50M annual lending volume = $1.5-4M revenue with 60-70% gross margins (risk-adjusted). (4) **Data Licensing:** Anonymized trade flow data (product trends, trade lane volumes, buyer behavior) sold to Chinese government agencies, banks, and logistics providers at $500K-1M annually. (5) **Premium Services:** White-glove compliance consulting ($10-50K per engagement) for large exporters navigating complex regulations (EU CBAM carbon tariffs, US Uyghur Forced Labor Prevention Act). Target $15-20M ARR by Year 3 with blended 70% gross margins, achieving profitability at $10M ARR (50% operating margins) and positioning for strategic acquisition by Alibaba, Tencent, or a Chinese state-owned bank at 8-12x revenue ($120-240M exit).
Related Startup Failures
MOBILE APP
808
Buzzer
\USA
$440.0M
THE VALUE PROPOSITION
Mobile-first sports streaming platform delivering personalized live game moments and highlights to cord-cutting fans.
CAUSE OF DEATH
Prohibitive sports streaming rights costs and inability to secure comprehensive league deals destroyed unit economics.
Rise
2020
Fall
2023
MOBILE APP
25
MaaS Global
\Finland
$65.0M
THE VALUE PROPOSITION
Single app subscription for all urban transport modes - public transit, taxis, bikes, scooers - to replace car ownership.
CAUSE OF DEATH
Impossible unit economics from wholesale transport pricing, fragmented operator integrations, and low consumer willingness to pay.
Rise
2015
Fall
2024
MOBILE APP
364
Tantan
\China
$150.0M
THE VALUE PROPOSITION
China's top dating app (360M users) attempted global expansion to replicate domestic success in emerging markets.
CAUSE OF DEATH
Cultural misalignment, regulatory crackdowns, and inability to compete with localized/Western apps killed international growth.
Rise
2014
Fall
2024
Disclaimer: This entry is an AI-assisted summary and analysis derived from publicly available sources only (news, founder statements, funding data, etc.). It represents patterns, opinions, and interpretations for educational purposes—not verified facts, accusations, or professional advice. AI can contain errors or ‘hallucinations’; all content is human-reviewed but provided ‘as is’ with no warranties of accuracy, completeness, or reliability. We disclaim all liability for reliance on or use of this information. If you are a representative of this company and believe any information is inaccurate or wish to request a correction, please click the Disclaimer button to submit a request.