WhyHive, a Melbourne-based data analytics startup that once aimed to democratize data the way Canva transformed design, will officially shut down on April 28. The announcement stunned many in the Australian startup scene, especially considering the company had only recently disclosed a $600,000 pre-seed raise. But behind the scenes, the founders wrestled with more than just market traction—they struggled with burnout, emotional tolls, and the brutal reality of sustaining a tech startup.
The WhyHive Vision: Making Data as Easy as Design
Founders T Guthrie and Matt Cohen started WhyHive with a bold idea. While running a social enterprise data consultancy, they realized that everyday users struggled with complex analytics tools. They envisioned a platform that allowed users—marketers, researchers, small business owners—to upload spreadsheets, surveys, product reviews, or sales data and get actionable insights with just a few clicks.
The founders modeled WhyHive on Canva’s success in making design accessible. Just as Canva replaced expensive design tools and professionals with a user-friendly interface, WhyHive aimed to eliminate the friction in analyzing and visualizing data. Their web-based app promised quick insights without the need for technical expertise, making it particularly attractive for non-technical teams across startups, nonprofits, and small enterprises.
Momentum and a Promising Raise
In March 2023, WhyHive closed a pre-seed funding round worth $600,000. Although they only announced the round 18 months later, the funding gave them a runway to shift focus from consulting work to full-time product development. Skalata Ventures led the round, with notable angels such as Culture Amp’s Jon Williams, Linktree’s Alex Zaccaria, and Up Bank’s Dom Pym joining the cap table.
Matt Cohen stepped away from his consulting role to devote his time entirely to the app. They hoped to use the funding to double down on product development, explore different pricing strategies, and find the right go-to-market approach. The duo didn’t just rely on spray-and-pray outreach either. Their pitch efforts included 119 investor meetings, with 81% of investors sourced through warm introductions. Of those, 56% connected with them in the final month of the raise.
Investors backed the duo primarily for their execution ability—88% cited founder strength as their reason for investing. The second-highest reason was the market potential, at 81%.
The odds seemed favorable. With industry veterans backing them, a validated problem to solve, and a few thousand users already on the platform, WhyHive looked poised to grow. But not all startups can outrun the harsh truths of the market.
The Struggles Beneath the Surface
Despite initial traction, WhyHive struggled to convert usage into sustainable revenue. In his farewell post on LinkedIn, Cohen opened up about the emotional and financial cost of pushing forward.
“We set out to make data analytics more accessible and affordable,” he said. “I’m proud we made that a reality for the few thousand or so people who used the app. But we needed more revenue and more growth to sustain the startup.”
The founders experimented constantly. They launched new features, revised pricing models, and tried multiple go-to-market strategies. But none of those strategies generated the traction they needed to keep WhyHive afloat. The work took a heavy toll on their health and well-being.
“It was incredibly emotionally taxing; we’d reached our limits and couldn’t give any more,” Cohen wrote. He didn’t shy away from admitting how hard the decision felt. For entrepreneurs who pour their identity and passion into their products, walking away often feels like failure, even when the path forward no longer exists.
Burnout, Health Issues, and the Hardest Call
Guthrie echoed the sentiment, sharing how the intense effort had worn them down physically and emotionally.
“We explored a lot of different paths, but over time, the toll of that effort built up, and both Matt and I ended up pretty burnt out,” she said. “For me, that also came with some health issues, so I’ll need to take some time out to rest and get my body back on track.”
The startup grind rarely leaves room for recovery. Founders wear many hats—product owner, marketer, salesperson, fundraiser, and support lead—often with little outside help. For Guthrie and Cohen, even with funding and early adoption, the pressure became unsustainable.
“It’s really challenging to make this call on a project when you love what you’ve built so much,” Guthrie said. “Please know that it was something we’ve considered deeply.”
A Gracious Goodbye
Both founders expressed deep gratitude to those who believed in them. Cohen directly addressed investors in his farewell note.
“Very few people get the privilege of being paid to bring an idea to life, and you gave us that. I’m sorry we didn’t succeed in the end,” he wrote. “The enthusiasm and feedback from users put a fire in our bellies. The best days were always the days we got to show you what we’d built.”
Guthrie took a more philosophical tone about the shutdown.
“As a wise person told me recently, to give something life is to give it death,” she said. “One possible way for a company to ‘end’ is for it to become part of a bigger one, or to transform into something else, which of course would have been ideal.”
Still, she acknowledged that most startups don’t exit through acquisition or IPO. Most simply wind down, with the team having their final Friday night drinks at the local pub, turning off subscriptions, and archiving their Slack channels.
Lessons from the WhyHive Journey
WhyHive’s journey teaches several critical lessons for founders, investors, and early-stage teams.
- Product-market fit matters more than funding. Despite securing capital and early adopters, WhyHive couldn’t generate consistent revenue or growth.
- Burnout is real. Even with belief, passion, and support, emotional and physical burnout can kill a startup faster than cashflow issues.
- Delayed announcements don’t change outcomes. WhyHive chose to announce its raise 18 months late, hoping for a grand launch after polishing the product. That delay didn’t impact adoption as much as the market’s appetite and timing.
- Gratitude leaves a legacy. Both founders signed off with warmth and appreciation. They owned their decisions, thanked their supporters, and remained proud of what they built.
The Final Chapter
WhyHive officially shuts down on April 28. The app will stop functioning, and users will no longer have access to the platform. Guthrie and Cohen plan to take time to rest, recover, and eventually explore new paths forward. They may have shut the doors on WhyHive, but the lessons they gained—and the impact they made—will follow them into whatever they choose to build next.
In a world that celebrates unicorns and billion-dollar valuations, WhyHive’s honest ending reminds us that success isn’t always binary. Sometimes, building something valuable for a few thousand people, showing up every day with heart, and knowing when to step away takes more courage than anything else.