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Habit Labs

The business, the turning points, and the decisions behind them.

Founded2010
Event year2012
Cash burnedUS$200K

01 / WHAT IT BUILT

What the company did

Habit Labs, founded in Seattle in 2010 by Buster Benson, was a social health software startup built to induce behavior change in individuals around their health using data, gamification and social challenges. Formed through a 2011 merger of Benson's Health Month and Jen McCabe's Contagion Health, it developed the behavior-change platform Budge, which let users challenge one another to adopt healthier habits and earn rewards. A Y Combinator Summer 2010 participant, it raised $865,000 in seed funding from investors including Y Combinator, 500 Global and angel Jennifer Lum.

02 / Habit Labs FAILURE REASONS

Failure factors

Founder Buster Benson wrote (11 Jul 2012, opened) that Habit Labs’ product path through Budge reached a dead end and that his guesses on how to change behavior had been mostly wrong, as the company was ending.

Product Strategy

Habit Labs led to Budge and Budge led to a dead end.

Product Market Fit

guesses on 'How do we change ourselves?' had been mostly wrong.

03 / EVENT HISTORY

Events in the structured record

  1. Operations ended

    Buster Benson’s post describing closing Habit Labs; founder blog (11 Jul 2012, opened) states 'Habit Labs is ending soon' and 'Habit Labs as a company is pretty much over.'

04 / CONTEMPORARY REBUILD ASSESSMENT

Difficulty of rebuilding this project today

Material for this section is being gathered and checked. It will appear here once ready.

Rebuild difficultyPending assessmentNot completed
Scoring basisNot completed
ScalabilityPending assessmentNot completed
Scoring basisNot completed

Overall assessment: Not completed

05 / CAUSAL CHAIN

How the factors connect

  1. 01

    Habit Labs was formed in 2011 through the merger of Buster Benson's Health Month and Jen McCabe's Contagion Health.

  2. 02

    The company raised $250,000 from angel investors in August 2011 but never got its Budge platform out of beta.

  3. 03

    In March 2012 co-founder Jen McCabe left in what Benson called a typical co-founder split over different visions.

  4. 04

    In July 2012, having run out of money, Benson shut Habit Labs down; Health Month was sold to Digitally Justified Technologies while Budge was closed and its code released open-source.