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Well, We Failed – Wattage is shutting down

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Re: Well, We Failed – Wattage is shutting down

#111

Post by tptacek »

jeremybell wrote: post #109
tptacek wrote: post #105

That seems less like a pitch deck and more a professionally polished brochure for a product, or maybe the introductory section of a prospectus. I don't see how an investor evaluate the company in that deck; I can't see: * Go-to-market, or even a price point (did I miss it?) or COGS estimates, or a plan for distribution * Traction, up-front sales commitments, or a sketch of target customers * Competitors and substitut…

There are a few of things that I omitted from this version that were usually included or shared in person. Use of proceeds and traction was always shared. We also provided a breakdown of how the pricing worked (as it depended on what you were building). I usually spoke in more detail about who the team was when I met with someone.

Thanks for replying! A question: did you ever wonder whether producing such intricately designed collateral actually harmed you from a signaling perspective, by tipping investors that you were focusing a lot on stuff that didn't matter? I ask because I started telling myself that a few years ago (not really so much re: investors, which I thankfully don't have, but other business associates) and I found it very liberating to not have to worry so much about design anymore.

Re: Well, We Failed – Wattage is shutting down

#112

Post by ChristianGeek »

jeremybell wrote: post #97
Retric wrote: post #90

Earlier quoted context omitted.

IMO, the custom radio is not really a terrible idea; the problem was all the pictures where of the same radio with a new paint job. At least make the knobs look like chess pieces, rocket ships, airplanes, or cats etc. Then again who buys radios? Custom clocks seem far more universal and let people use a wider range of shapes.

To some extent, the initial product wasn't important. Yes, it needed to resonate with an audience, but it's sole purpose was to test the waters and prove that we could ship. We liked the radio because it was unique enough that we felt it would stand out. Instead of flipping between AM/FM stations, you'd be flipping between podcasts. I think that would have sold pretty well... or at least well enough for us to prove t…

I have to disagree...I think your choice of products and the blandness of the customizations may not have buried you, but they certainly helped dig the hole.

Re: Well, We Failed – Wattage is shutting down

#113

Post by advertising »

Really hard to start something you have to educate people about in the first place, before selling them.

Case in point: it was not quite clear to me what they wanted to do (for a layman like myself in this space) after reading the post-mortem. I felt like I was filling in the blanks in my head and making assumptions.

Re: Well, We Failed – Wattage is shutting down

#114

Post by kriro »

"""We were targeting software developers, as we believed we could offer them an entirely new outlet for their creative efforts. But this narrative wasn’t big enough. Investors want to hear a story about changing the world."""

I disagree with this. I think focusing on software developers and making the "hardware side easier" is a viable enough hypothesis. It's better to focus on one segment and understand it well. Have a vague notion of the other potential customers but leave the dreams of hockey sticks to the VCs instead of feeding them imo. Rather focus on whatever segment you identify as a good entry point and validate that is true. I think a smart VS prefers someone that is laser focused on a segment vs someone that dreams too big early but I might be wrong.

Re: Well, We Failed – Wattage is shutting down

#115

Post by advertising »

jeremybell wrote: post #17

There are some questions about the deal we secured to return our investors' money. Without going into the specifics, I can say it was essentially an acquihire. I'm going to another company, and part of that deal allows me to repay our investors in full.

That's awesome

Re: Well, We Failed – Wattage is shutting down

#117

Post by pjc50 »

jkestner wrote: post #16

The good news is the vision of mass-customized electronics is a huge deal. The bad news is, Apple proved it in 2007-2008 with the iPhone + App Store. The points that you could've focused on a specific object are good. It would've made you think like your intended customer, the designer. You would've been forced to answer the question "Who wants this?" instead of planning layers of abstraction. You should've taken a s…

? The iPhone is less customisable hardware than the old Nokia candy bar phones.

Re: Well, We Failed – Wattage is shutting down

#118

Post by listic »

jguimont wrote: post #83

I built the Timbuk2.com bag customizer ( http://timbuk2.com/customizer ) and I would say that 50% of their business is on the custom side. People are playing with the product and often they surprise us. Timbuk2 ends up charging a premium for the custom bag, but it a unique bag. Same applies to Nikeid or adidas or converse or ... A lot of people are trying to build custom products and let the consumer get access to th…

Thanks for the tip re: Timbuk2. They are offering a bike share if you leave your driver's license and CC as a guarantee. I really wouldn't want to leave my CC; I wonder if this is legal.

Re: Well, We Failed – Wattage is shutting down

#119

Post by RogerL »

smackfu wrote: post #81
ryanSrich wrote: post #38

Earlier quoted context omitted.

Right? I see this a lot and it's often an investors first response when asking for small seed rounds: "Well have you considered raising money internally? Ask around your friends and family". If I had friends and family that could just toss me a $250k I don't think I'd be in this position.

But they have to ask, because if the answer is no, that's a huge red flag. "You are willing to lose my money, but not your friends or family?"

I would say an answer of "yes" is a huge red flag. A good CEO needs to understand risk/reward. VCs are investing in risky things, and thus distribute their cash amongst hundreds of start ups, fully aware that most will go to zero. It doesn't matter because 1 will go to $1 billion.

OTOH, family usually can't afford to lose what they give. They make emotional decisions, not financially rational ones.

If a CEO can't distinguish those entire distinguish those entirely different cases I doubt their financial acumen. You go to VC for moon shots, to the bank for proven business models, and to family and friends to build a family 'lifestyle' and asset heavy businesses (asset heavy so you can recoup some of the money if your business fails).

No one rational should believe that their startup will succeed no matter what. We know, with certainty, that it almost certainly will fail. It's a flutter - a bet on a fabulous future (fabulous in terms of success, making a difference, huge wads of cash, whatever). If VCs expect that kind of naivety, well, you get what you pay for. How many other ways will that CEO be naive?

Re: Well, We Failed – Wattage is shutting down

#120

Post by amit_m »

Wow, that mission statement is so ambitious it made me cringe. Reality check: hardware startups are struggling to ship very simple products after obtaining >$1m funding.

Choosing just one product for color/material customization is a good idea, but I'm not sure that radio is the right choice. I venture a guess that the founders were simply stuck on the concept of making customizable electronics.

Maybe a fashion accessory (e.g. headphones, skateboards) or home decor/furniture of some sort could have been a better choice. People will pay a lot of money to show off.

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