Sesame

Sesame built a cloud-based platform to replace physical keys and access cards with mobile app-controlled entry to buildings and offices. The problem was real: facility managers struggled with lost keys, stolen cards, and the administrative burden of rekeying locks when employees departed. Large enterprises with multiple locations experienced this most acutely, where tracking hundreds of credentials became operationally expensive. The pain was measurable—companies could quantify lock changes, replacement card costs, and security incidents. However, Sesame overlooked that established competitors like Salto and Assa Abloy already dominated the market with entrenched relationships and superior hardware integration. The startup missed critical warning signs: enterprise customers demanded seamless compatibility with existing lock infrastructure, not replacement systems. Sesame's focus on convenience and mobile-first design appealed to early adopters but failed to address the switching costs and integration complexity that mattered most to decision-makers. By solving an acknowledged problem without accounting for competitive moats and customer procurement realities, Sesame couldn't differentiate enough to survive.