Angel Sensor was an open-source wearable tracker designed to measure various health metrics, including heart rate and blood oxygen levels. The company gained initial success through a crowdfunding campaign but eventually faced insurmountable manufacturing and financial challenges, leading to its shutdown.
What was Angel Sensor
Angel Sensor's main product was a flexible wristband designed for 24/7 health monitoring. Its unique value proposition lay in its open platform, allowing developers to create custom apps using the device's raw data. Notable achievements include raising $460K and being featured in expert collections like Digital Health and Telehealth.
Reasons behind Angel Sensor's Failure
Manufacturing Problems Angel Sensor faced numerous manufacturing issues that severely hindered the production and delivery of their wearable devices. These problems were highlighted in their last blog post from April 2015, which mentioned significant engineering difficulties. The inability to efficiently produce the devices contributed to the company's downfall.
Engineering and Financing Difficulties The company experienced substantial engineering challenges and financial constraints, leading to the downsizing of their R&D efforts. These difficulties were detailed in their final blog post, where they acknowledged the impact of these issues on their ability to sustain operations and innovate.
Delayed Product Delivery Angel Sensor's product was delivered over two years late to backers, which likely eroded trust and support from their community. Bob Troia noted on Twitter that the company had gone silent for nearly a year after the delayed delivery, further damaging their reputation and customer confidence.
Impact on Investors and Market
Angel Sensor's failure left investors with significant financial losses and disrupted the wearable tech market. Despite raising $460K, the company's inability to overcome manufacturing and engineering challenges led to its shutdown, as detailed in MobiHealthNews and CB Insights. This collapse highlighted the risks associated with crowdfunding and open-source health tech ventures.
Lessons Learned from Angel Sensor's Failure
Thoroughly vet manufacturing partners: Ensure reliability and capability to avoid production delays and quality issues.
Maintain transparent communication: Regular updates can sustain trust and support from backers and stakeholders.
Secure adequate funding: Plan for unforeseen expenses to prevent financial constraints from stalling progress.
Prioritize engineering excellence: Invest in robust R&D to overcome technical challenges and innovate effectively.
Manage timelines realistically: Set achievable deadlines to avoid eroding customer confidence with delays.
Adapt to market feedback: Be flexible and responsive to user needs and industry trends.
Build a resilient team: Assemble a skilled and adaptable team to navigate challenges and drive success.
Frequently Asked Questions about Angel Sensor
What were the main features of Angel Sensor?
Angel Sensor could measure pulse, temperature, activity, and blood oxygen level, designed with open communication protocols for developers.
Why did Angel Sensor fail?
Angel Sensor faced manufacturing problems, engineering and financing difficulties, and significant delays in product delivery.
When did Angel Sensor start and how much did they raise?
Angel Sensor started in 2013 and raised $334,000 through an Indiegogo campaign.
Looking Ahead
As startup founders navigate the challenging landscape of entrepreneurship, it's crucial to learn from past failures and plan for the future. Consider how Sunset can help you avoid similar pitfalls by handling all the legal, tax, and operational burdens when winding down a startup. This allows you to avoid penalties, reduce liabilities, and immediately move onto what's next.
