Every big pop career seems to have a closed door somewhere in its early chapters. Some of the biggest names of the last twenty years were let go by a record company before their careers took off.
The “lacking talent” label is a popular way to tell these stories. Still, the sources I found describe the drops without confirming that was the stated reason. Here are three stars whose first deals ended early, and what is actually documented.
Lady Gaga and Her Three Months at Def Jam

She was around 20 when she signed with Def Jam Recordings in 2006, and she was dropped after only a few months. L.A. Reid was chairman of Def Jam at the time, and the drop came just three months after she signed.
Gaga has described the experience in personal terms. She said Reid never met with her after signing her, and that she waited outside his office for hours hoping to talk about her songs. Her 2011 video for “Marry the Night” tells the story of being dropped by Def Jam and then signed by Interscope. She reached Interscope through Akon’s KonLive imprint.
Katy Perry and the Album That Was Nearly Finished

Perry’s path to the top was slow and bumpy. She was dropped by Island Records, and she was later dropped by Columbia Records about 80 percent of the way through recording her debut album. The sources I found don’t say the label cited a lack of talent.
The setback left her without a deal and looking for work. She worked for a while at an independent A&R company. Producer Ted Bruner has recalled a Perry who was very sad after being dropped. They co-wrote the song “Lost”, which appeared on her platinum selling major label debut, One of the Boys.
Bruno Mars and the Short Stay at Motown

Mars moved to Los Angeles young and landed a deal quickly. He moved from Hawaii in 2003 and signed with Motown Records in 2004. One account says he was 18 when he secured that solo deal.
The deal didn’t last. Motown dropped him after less than a year, and he soon signed with producer Steve Lindsey and Cameron Strang of Westside Independent. Reports note that he spent years writing for other artists before becoming a global star. I found no source stating that Motown let him go for lack of talent.