15 Start-Ups That Failed Miserably

1. Pixelon.com

Pixelon

Source: Flickr – bfgcom 

Using an entire Internet Company as an embezzling front is apparently not just something that happens in the movies.

When Pixelon launched in 1998, it promised the world access to technology that would make it easier than ever to transport high-quality videos. There was so much hype around the launch that their first party cost $16 million and drew star performers like Kiss and LeAnn Rimes (that was a big deal in 1998).

Two years later, the world discovered that the company’s founder Michael Fenne was the convicted white collar criminal Paul Stanley using the name Fenne as an alias. After his arrest, the board was served with lawsuits from unhappy creditors who wanted their money.

Almost everyone was surprised when they discovered the technology was not what the company said and that Stanley had used it as a way to embezzle money he had stolen from previous jobs. The company seemed to have so much potential, only lasted for two years.

Whoops.

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