One of the most successful campaigns in the history of crowdfunding is the Pebble Time, one of the first smartwacht funded with donations being the first on the market, however, the product ended up failing, why? Here we give you the answer.

Until recently, very few dared to innovate in wearable technology, but the creators of the Pebble campaign decided to take the challenge. So they launched a crowdfudning campaign and no doubt that their product pleased the masses. Well, it became a total success on the platform where it is published.

The Pebble Time had very special functions: it allowed you to read your messages from the screen of the device, answer them with voice control and even other basic functions to control your phone from your wrist. All this with a minimalist and attractive design.

Pebble: Why did it fail? 1

In fact, from this product came two campaigns, the first collection 10.3 million dollars in 2012, the second launched in 2015 raised a total of 20 million dollars. Everyone wanted a smartwacht, it was the fashion of the moment. But the decline occurs in 2016 when the low fever and are forced to launch a third campaign that raised 12 million, but it was not for digital watches, was a device that serves to analyze your efficiency while you exercise.

The failure of Pebble

The disadvantage was just that: it was a fad. In addition, there were details that left followers dissatisfied, such as software problems and poor financial decisions of the company. As a result, the manufacturing company went bankrupt and Fibit bought it. A disappointment for those who had faith in these devices.

When they launched their first campaign, everything went perfectly they marked a trend that would later join, Samsung, Motorola and the prestigious Apple. This inspired them to bet on crowdfunding for the second time, the results were much more successful than they expected, but Erick Migicovsky, creator of the device, did not count that there were so many complaints with the product.

Errors in the financial plan

When you have a company, you have to plan for the long term, and maybe this was the mistake Erick Migicovsky made. He did not have a real long-term financing plan to know what to do after his campaign.

The smart watch company begins to have losses and by March 2016, Pebble is led to lose 25% of its employees. It was already quite remarkable that there was a serious financial problem. In addition, there was no investor who wanted to rescue Pebble from bankruptcy.

What happens? Eric Migicovsky launches a new campaign with new products, including a device capable of recording sports efficiency, the favorite of the campaign, and the cheapest, since it cost about $ 99. In spite of the fact that the campaign goal is again exceeded, it is not enough to keep the company in the long term, financial problems return.

Pebble: Why did it fail? 2

This is how in September 2017 Pebble is sold to Fibit for 23 million dollars, discontinuing the company’s software and leaving almost 60% of the people who worked for Pebble without work. Even though, those who already had their smartwacht could continue using it, but could not use it, they could only go to the Fibit offices to install new software.

Apple in the competition

When Apple saw the popularity of digital watches, he also wanted to join the competition and launch his own product Iwacht, a smart watch with a full touch screen as a differentiating factor. At first, Eric Migicovsky was not scared of this competitor, but the popularity and trajectory of Apple made people more interested in their watches than in those of Pebble.

Pebble: Why did it fail? 3

The disinterest in the smartwatch

During the short time that digital watches lasted, the wearable technology market changed a lot. In fact, mature so fast that you could not cover the bulk of people requesting a smart watch.

Little by little, the interest for the smart watches went diminishing, the people were no longer interested in this device, with having their smart phone is enough for them. Pebble, in his case, did not know how to keep the proposal fresh and innovative, nor did he know how to maintain the leadership in front of the different competitors that were appearing.

Pebble: Why did it fail? 4

And it was as well as one of the most successful campaigns of crowdfunding, term being a failure. The moral? Always have a long-term plan to maintain leadership and success in the market.

If you liked this story we invite you to read: Coolest Cooler: From success to delivery problems

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Pebble: from the top of success to bankruptcy