Cushion
A niche app to negotiate bank fee refunds has a small addressable market.
Cushion was a Fintech startup founded in 2016 in USA. It raised $22M before collapsing in 2025 — 9 years of runway burned. IdeaProof's AI Failure Score: 48/100, driven by narrow market & acquisition costs. The shutdown affected employees, investors, and the broader Fintech ecosystem. This case study breaks down the timeline, root causes, competitors that won, and replicable lessons for founders validating similar ideas today.
Why did Cushion fail?
Cushion failed in 2025 after 9 years of operation, losing $22M in raised capital. The root cause was narrow market & acquisition costs. Key lesson: A niche app to negotiate bank fee refunds has a small addressable market.
2016 → 2025
$22M
Fintech
USA
IdeaProof AI Failure Score
Full Analysis
Cushion built an app that automatically negotiated bank fees and overdraft charges on behalf of users. While appealing, the addressable market was limited and customer lifetime value was low. Shut down in 2025.
Could This Failure Have Been Prevented?
IdeaProof's AI validates market demand, competitive positioning, and business model viability in minutes — catching the exact issues that sank Cushion.