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December 9, 2019 11:30 pm

E-Scooter Company 'Unicorn' Goes Bust After Spending Big On Facebook Ads

Electric scooter start-up Unicorn is shutting down after spending too much money on Facebook ads. The BBC reports: Customers received an email from founder Nick Evans, saying he was "very sorry" and was trying to sell Unicorn's assets to offer partial refunds. The Texas-based company sold just 350 of its $699 commuter scooters, according to The Verge. They have a top speed of 15mph and a range of 15 miles. And start-up tracker Crunchbase said Unicorn had raised just $150,000. "It saddens me to write this letter but we have run out of funding and are shutting down operations immediately," the email says. "We unfortunately do not have the resources to deliver your Unicorns nor are we able to provide refunds, as we are completely out of funding." The cost of "Facebook and Google ads, payments for loans, and other expenses" ate through the company's funding quicker than Mr Evans anticipated. "A large proportion of the revenue went toward paying for Facebook ads to bring traffic to the site," the email says. "Unfortunately the cost of the ads were just too expensive to build a sustainable business."

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