The Atlanta-based nonprofit inBloom was started with $100 million in financing from the Bill and Melinda Gates Foundation and Carnegie Corp.
The goal was to give educators a data tool to personalize instruction. But the idea of storing sensitive student data in cloud-based servers had parents and lawmakers worried about privacy and security.
Earlier this month, New York backed out of plans to use inBloom. Illinois was allowing districts to use it, but none had.
In a statement Monday, Chief Executive Iwan Streichenberger called its demise a "missed opportunity" for teachers and school districts.