Quirky Inc., an invention startup, filed for chapter 11 bankruptcy on Tuesday, showing the challenges of picking winners when it comes to consumer products and investment opportunities.

The bankruptcy filing is a far fall for a company that initially showed promise, with an ambitious, young founder, corporate partnerships and a reality-TV show on the Sundance Channel. Quirky had been able to raise $170 million from several firms, including Norwest Venture Partners LP, RRE Ventures, General Electric Co.’s GE Ventures LLC and...