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Well, We Failed – Wattage is shutting down

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Re: Well, We Failed – Wattage is shutting down

#151

Post by beambot »

patmcc wrote: post #124
smackfu wrote: post #81

Earlier quoted context omitted.

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?"

An investor should be willing to make a "10% chance for a 100X return" type investment, but no, I wouldn't usually suggest that to my friends and family unless the amount of money was not significant to them. I don't think that's a red flag; investors have different risk tolerances for good reasons.

What you describe is a basic application of the Kelly Criterion: https://en.wikipedia.org/wiki/Kelly_criterion

It helps you determine how much of your bankroll you can wager depending on (1) the odds, and (2) the size of your bankroll. It's the same reason why you shouldn't (mathematically) play the lottery (when it's expected value is actually positive) unless you're already filthy rich. The same math applies for hyper-risky startup investing.

Re: Well, We Failed – Wattage is shutting down

#152

Post by fit2rule »

Animats wrote: post #56

It's not about the pitch deck. It's about the product. How many people really want a custom radio front panel? There are other customized products in that space which might be more useful. * Customized entertainment remotes. Tell us what gear you have, what you like to do with it, and we make a remote or remotes that makes it easier to use. You might have a simple "watch TV only" remote, and a tablet type "does every…

Geeze, they really missed an opportunity: the electronic musician market.

Right now the electronic-music market is undergoing a massive explosion of new technologies - new products, new synths, just a real explosion of technology for music-makers.

Imagine if a company sprang up that could viably produce custom panels - real hardware - for all the synth software thats on the market? Do this, become the leader, and you will fill in a very big hole ..

Re: Well, We Failed – Wattage is shutting down

#153

Post by waterlesscloud »

fit2rule wrote: post #152
Animats wrote: post #56

It's not about the pitch deck. It's about the product. How many people really want a custom radio front panel? There are other customized products in that space which might be more useful. * Customized entertainment remotes. Tell us what gear you have, what you like to do with it, and we make a remote or remotes that makes it easier to use. You might have a simple "watch TV only" remote, and a tablet type "does every…

Geeze, they really missed an opportunity: the electronic musician market. Right now the electronic-music market is undergoing a massive explosion of new technologies - new products, new synths, just a real explosion of technology for music-makers. Imagine if a company sprang up that could viably produce custom panels - real hardware - for all the synth software thats on the market? Do this, become the leader, and you…

Does anyone know how big the hobbyist market is for electronic musicians? I've noticed a lot of my acquaintances talk about "making beats", including a lot of people I'd never suspect. It's made me think that group is larger than I would have thought.

Re: Well, We Failed – Wattage is shutting down

#154

Post by bjpirt »

jeremybell wrote: post #139
downandout wrote: post #126

I'm not sure how I feel about all of these companies shutting down prematurely to return investor capital (the following example is not based on this company, but it illustrates the point). If a $50M investment actually means $10M in risk capital, and the $40M will be returned at the slightest sign of failure, then entrepreneurs are giving up far too much equity because the investor is actually only risking $10M. Fur…

We burned through all of our investors' money, and worked until we couldn't meet payroll. Once it was clear that we were going to run out of cash, I took a job and negotiated a deal that allowed me to make our investors whole.

I'm sad that it didn't work out, but kudos to you for doing this. Behaving decently feels like it's becoming an increasingly rare attribute of doing business these days.

I'm curious if you feel it could have worked out differently if you'd flipped the approach on its head and instead of starting with investment and then the product, you bootstrapped custom radios and built the platform out from there when you had some traction?

I ask partially because I'm in a similar place at the moment with a product (http://mirobot.io) and considering different growth strategies.

Re: Well, We Failed – Wattage is shutting down

#155

Post by pjc50 »

jkestner wrote: post #122
pjc50 wrote: post #117

Earlier quoted context omitted.

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

The customization people actually want is met by the software layer. With a responsive touch screen and apps, you can satisfactorily reproduce physical interfaces, and more importantly, their functions.

People expect total plasticity of software. But that cannot satisfactorily reproduce all physical interfaces - people cannot operate a touchscreen without looking at it. Despite this they seem to be becoming popular in cars where they cannot be safely operated by the driver.

The rise of smartwatches suggests that people want another kind of interface. The complaints over screen size are another aspect. You can't have a screen that's both small (easily carried) and large (easily read) at the same time.

Finally there's an aesthetic argument. People like the appearance and heft of twiddly knobs and clicky buttons. This is why Roberts DAB radios are so popular.

People customise the external appearance of their featureless iPhones with flip or shell cases. People like to be visibly a bit different.

Re: Well, We Failed – Wattage is shutting down

#156

Post by marincounty »

jeremybell wrote: post #67
aaron-lebo wrote: post #53

Earlier quoted context omitted.

One of my favorite Jobs stories is how he took Apple's late-90s lineup of numerous products and simplified it in a 2x2 matrix. (Maybe not the best link, but it shows what I'm talking about.) http://www.slopefillers.com/steve-jobs-product-matrix/

That strategy worked because Apple was dying and Jobs needed to focus their efforts. But that all changed once they found their footing. Consider the iPod and all the sizes and colours they offered, or what Apple is now doing with the Watch. There are many many customization options, and I suspect these options are only going to grow.

I don't know you, but you seem stuck on customization? A lot of us out here just want a functional product with a decent half life. I think Apple is making a big mistake putting form over function? I cringe when I hear I need a heat gun in order to open their sleek products. If a product is well made, and does what it's suspose to do, I don't see the need for a bunch of aesthetic nonsense. The best watchmakers don't vary their designs much-- Rolex, Patek, and Omega vary their styles so little, I mistake some older models for new. I glad you have a new job. I'm just more mystified over VC funding/hiring than before I came here today.

Re: Well, We Failed – Wattage is shutting down

#157

Post by marincounty »

Lord_Zero wrote: post #33

"Having previously raised $250,000 from friends & family" I cant imagine any of my friends or family being able to give me a quarter million.

I would never ask my middle class friends and family for funding on such a speculative venture to begin with. I would ask--if I had rich friends and family, and it was a great idea. This was not, but I don't understand most fashion anyways.

Re: Well, We Failed – Wattage is shutting down

#158

Post by marincounty »

gedrap wrote: post #150
jeremybell wrote: post #97

Earlier quoted context omitted.

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…

>>> To some extent, the initial product wasn't important. I am not sure if I agree with this. I think a good initial product choice is really important to gain the much needed initial traction. If the initial product is good, the potential users will resonate with it. They will think 'Yeah! I want it!'. They will think 'Yeah! These could be so much more convenient to use / cooler'. You get the idea. But nowadays, few…

Actually, I use a cheap portable AM radio every day. I started using one when I was in construction--the're cheap, and simple. I don't have to fiddle with it, don't care if it's stolen, or I break it.

Re: Well, We Failed – Wattage is shutting down

#159

Post by GamblersFallacy »

waterlesscloud wrote: post #153
fit2rule wrote: post #152

Earlier quoted context omitted.

Geeze, they really missed an opportunity: the electronic musician market. Right now the electronic-music market is undergoing a massive explosion of new technologies - new products, new synths, just a real explosion of technology for music-makers. Imagine if a company sprang up that could viably produce custom panels - real hardware - for all the synth software thats on the market? Do this, become the leader, and you…

Does anyone know how big the hobbyist market is for electronic musicians? I've noticed a lot of my acquaintances talk about "making beats", including a lot of people I'd never suspect. It's made me think that group is larger than I would have thought.

Use Googles Adwords Keyword Planner to research search query stats, aka the number of people per month searching for "making beats" & other similar keywords.

https://adwords.google.com/KeywordPlanner

Re: Well, We Failed – Wattage is shutting down

#160

Post by smackfu »

manish_gill wrote: post #107
smackfu wrote: post #81

Earlier quoted context omitted.

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?"

...That's kinda stupid. Maybe no one was in a position to loan that much money. Or maybe nobody wanted to? Could be any number of things.

The "No" is to the question, "did you ask your friends and family?"
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