Slashdot Mirror
Another Crowdfunded Startup Takes Customers' Money, Then Shuts Downs (mercurynews.com)
An anonymous reader quotes the Bay Area Newsgroup:
A Bay Area startup that promised to give music lovers state-of-the-art wireless earphones is instead closing its doors, becoming the latest in a string of crowd-funded companies to take customers' money and shut down without shipping a product. San Francisco-based Kanoa ran out of capital and shut down this week, leaving in the lurch scores of customers who paid $150 or more to pre-order high-tech earphones they never received. The company emailed customers on Wednesday to break the bad news, directing them to a letter posted on the Kanoa website...
Kanoa is just the latest local crowdfunded company to disappoint customers. Last summer San Francisco-based startup Skully imploded, to the dismay of 3,000 customers who paid $1,500 each for high-tech motorcycle helmets they never received. In February, Lily Robotics, another San Francisco-based startup, filed for bankruptcy. Unlike Skully and Kanoa, Lily promised to reimburse the more than 60,000 customers who paid for but never received its camera drones.
In a letter online the company claimed they are "in negotiations" with potential investors, "and also large tech companies on an acquisition" -- but unless and until funding materializes, "we do not have enough capital to stay operational..."
"We know you are disappointed, and can only ask that you understand that we genuinely tried."
Kanoa is just the latest local crowdfunded company to disappoint customers. Last summer San Francisco-based startup Skully imploded, to the dismay of 3,000 customers who paid $1,500 each for high-tech motorcycle helmets they never received. In February, Lily Robotics, another San Francisco-based startup, filed for bankruptcy. Unlike Skully and Kanoa, Lily promised to reimburse the more than 60,000 customers who paid for but never received its camera drones.
In a letter online the company claimed they are "in negotiations" with potential investors, "and also large tech companies on an acquisition" -- but unless and until funding materializes, "we do not have enough capital to stay operational..."
"We know you are disappointed, and can only ask that you understand that we genuinely tried."
Some actual numbers, old and incomplete:
https://www.crowdfundinsider.c...
That's the best I could find.
"So long and thanks for all the fish."
Now average people know what venture capital people feel like with most startups.
Not quite true, companies that succeed offset the ones that fail for venture funds, that is if you are smart venture capital investor. Plus venture funds have a say in how the money is spent.
When putting money into crowdfunding sites the only thing you might get back from the ones that succeed is the original investment in the form of a product. Basically, much more risky than venture funding with few of the rewards. In other words, kiss your "investment" goodbye and just be happy if a Fedex box shows up at your door a year down the line.
KANOA send headphones for review, this guy THOROUGHLY reviewed them and SLAUGHTER the product, shortly after they closed their web page
https://videosift.com/video/Re...