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Well, We Failed – Wattage is shutting down

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Re: Well, We Failed – Wattage is shutting down

#91

Post by ben010783 »

aaron-lebo wrote: post #53
alaskamiller wrote: post #49

This is like making a McDonalds because everyone says they want it their way but deep down the truth is we just want an In-N-Out menu of 5 things. And the McDonald's way is bloated, slow, expensive, and dying.

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/

Just the other week I was listening to a podcast where they were talking about how Apple seems to be moving in the opposite direction now. They have the MacBook, MacBook Air, MacBook Pro (and a non-Retina version), iMac (and a Retina version), Mac Pro, and a Mac mini.

Re: Well, We Failed – Wattage is shutting down

#92

Post by Kranar »

billyhoffman wrote: post #77
daenz wrote: post #55

Earlier quoted context omitted.

I'm astonished at the amount raised from "friends and family." If my network of people I can ask is 250 people (a lot!), and my success rate for securing some amount of money is 10%, the average amount contributed per person is $10,000. Maybe it's my modest means speaking here, but that's an insane amount.

It's not "Friends and Family." It's "Friends and Family who qualify as accredited investors." (at least in the US). An accredited investor is "someone whose net worth exceeds $1M not including their primary residence." The vast majority of people are not accredited investors because they cannot use their house as part of their net worth. This is not your extended family giving you a $500 or $1000 to pursue your dream…

Friends and family are allowed to invest in a company without being an accredited investor. The rule about accredited investors involves soliciting investment from the general public. Rule 504 allows a company to raise upwards of 1 million dollars over a 12 month period from non-accredited investors so long as that money is raised from pre-existing contacts, that is no general solicitation is made.

http://www.sec.gov/answers/rule504.htm

Re: Well, We Failed – Wattage is shutting down

#93

Post by Kranar »

billyhoffman wrote: post #86
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.

See the comment above. It's not "Friends and Family." It's "Friends and Family who qualify as accredited investors." This is not your extended family giving you a $500 or $1000 to pursue your dream.

This is a misconception. Friends and family are allowed to invest in your company without being accredited investors.

Re: Well, We Failed – Wattage is shutting down

#94

Post by Mahn »

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.

If you are being acquihired, how come you hint you are open to job enquiries on your post? Just curious.

Re: Well, We Failed – Wattage is shutting down

#95

Post by skj »

jeremybell wrote: post #57
daenz wrote: post #51

Earlier quoted context omitted.

Reminds me of Mitt Romney's entrepreneurial advice: "Borrow money if you have to from your parents." Such a disconnect. Must be nice to have parents to be able to bankroll your businesses, Mitt.

Why would you immediately think it was my parents? Sigh.

Why would you immediately think the poster was referring to you? Seemed directed at Romney.

Re: Well, We Failed – Wattage is shutting down

#96

Post by loumf »

daenz wrote: post #55
kamaal wrote: post #29

Earlier quoted context omitted.

Just wanted to ask how common is it to return money to VC's? Or how is this any different than a bank loan, If the VC doesn't shoulder the risks that come with these kind of projects I wonder what is the value they add. People might as well borrow the money on loan.

I'm astonished at the amount raised from "friends and family." If my network of people I can ask is 250 people (a lot!), and my success rate for securing some amount of money is 10%, the average amount contributed per person is $10,000. Maybe it's my modest means speaking here, but that's an insane amount.

It might be "friends and family (and myself)".

Re: Well, We Failed – Wattage is shutting down

#97

Post by jeremybell »

Retric wrote: post #90
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…

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 the concept and raise the large amounts we needed.

Re: Well, We Failed – Wattage is shutting down

#98

Post by jeremybell »

rudolf0 wrote: post #78
pbreit wrote: post #69

Earlier quoted context omitted.

> How many people really want a custom radio front panel? It looks like they finally decided to focus on this one product which I think is smart because my guess is "way more than you think". Customization may be difficult to make but it is very easy to sell.

I think sticking with one product to start off with is a good idea, but I'm not sure a radio was the right choice.

You may be right. 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 the concept and raise the large amounts we needed.

Re: Well, We Failed – Wattage is shutting down

#99

Post by myth_buster »

jeremybell wrote: post #62
myth_buster wrote: post #46

Earlier quoted context omitted.

That deck is really pretty but I'm really curious whether investors would spend their time going through so much text. Here is a pitch deck that buffer used. http://www.slideshare.net/Bufferapp/buffer-seedrounddeck

I felt I needed to tell a richer story about what we were trying to achieve, mainly because we were created an entirely new market. I couldn't point to another company and say "we're like them, but 10x better." I didn't exactly have market numbers to use as a method of framing the investment potential. I felt I needed to paint a picture about a future we were trying to create... but you may very well be correct.

I'm with you on having a narrative and conveying the drive. Did you find that some investors understood that and made decisions based on it or was it that you found them to be speaking a different language?

Btw, I respect the effort and thought that went into analyzing the reasons for failure and the courage required to be open about it. Hope things work out in your next attempt.

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