A company once hailed as a shining light of the UK technology startup scene collapsed into administration on Tuesday.
Blippar, which specialised in augmented reality and claimed to be valued at $1bn, said it was unable to secure the additional funding that it needed from one of its investors.
A statement on Blippar’s website said the company’s services were likely to come to an end and all employees would be let go.
The company’s technology allowed users to view a virtual overlay on the real world that provided additional information and opportunities to interact through their smartphones.
It was used for a broad range of purposes from education to advertising but ultimately failed to make money as augmented reality began being seen by advertisers as a gimmick.
Blippar's Twitter feed said: “We're saddened to announce that Blippar has gone into administration today.
“We're eternally grateful to all our team members, customers, partners, our board and investors who have been with us on this incredible journey.”
“This is an incredibly sad, disappointing and unfortunate outcome,“ the company said.
Founded by entrepreneurs Ambarish Mitra and Omar Tayeb in 2011, Blippar was a pioneer of promising secured funding from major investors including Qualcomm.
It claimed to have joined the exclusive club of “unicorns” - startups valued at $1bn or more - in March 2015, one of only a handful of UK tech firms to reach that status at the time.
Mr Mitra once said that “what I'm trying to build is bigger than the internet itself.”
But his company never looked like achieving those lofty aims as Blippar rapidly burned through cash and struggled to find a profitable niche.
Rumours circulated that users had deserted its platform and the company had little recurring revenue.
Its latest accounts filed it lost £35m in the 12 months to March 2017 and brought in just £5m.
It raised a further $26m this year, taking its total to around $125m, making it one of the best-funded UK tech startups.
Paul Appleton and Paul Cooper of insolvency firm David Rubin & Partners have been appointed as joint administrators.
“The appointment of administrators has arisen effectively as a result of an alleged dispute over continued funding,” said Mr Appleton.
“Following their appointment, the administrators are now exploring all possible options for the future of the business for the benefit of all stakeholders.”
