As you may have heard recently, Juicero is shutting down. While not entirely unexpected, their business model just seemed insane to start with. As recounted in some of the Slashdot comments, Juicero went through $100+ million dollars in funding.
This brings up an obvious question:
HOW DO YOU SPEND THIS MUCH MONEY?
Really. Over 100 million dollars to create a device that does nothing but squeeze juice? Give me only ten million and I will fail faster for you! I’m not quite sure what these guys were doing with all that money(although AvE’s video seems enlightening), but I’m beginning to think that they were simply trying to go too far at once. Instead of making a small, feasible product at first, they went and sunk a whole lot of money into design and not a whole lot into making an actually reasonable device. This is just insane the amount of money spent on this.
From the VC point of view, probably what they were thinking is “continuous revenue stream”, which would be reasonable from their view of getting money back. While the premise may have good, the actual execution was very lacking. After all, “aim for the stars, hope not to get the exact polar opposite of what you were actually trying to accomplish.”