Inboard Technology, founded in 2015, was an electric skateboard startup based in Santa Cruz, California. Known for its M1 skateboard with in-wheel motors and swappable batteries, the company initially thrived but struggled after pivoting to electric scooters. Financial difficulties led to its liquidation in 2019.
What was Inboard Technology
Inboard Technology's flagship product, the M1 electric skateboard, stands out with its in-wheel motors and swappable battery system, offering a seamless and extended riding experience. Notably, the company raised $12.87 million in funding and filed 8 patents, underscoring its innovative approach in the electric mobility sector.
Reasons behind Inboard Technology's Failure
Pivot to E-Scooters Inboard's decision to shift from electric skateboards to electric scooters was driven by a large order from a European operator. This pivot required significant resources and a longer development timeline, which the company could not sustain financially, ultimately stretching its resources too thin.
Investor Decisions Despite hitting key goals, Inboard's main investors decided to push the company into liquidation. Promised additional loans never materialized, leaving the company with no time and few options to recover, as noted by founder Ryan Evans.
Development Timeline The timeline for developing the e-scooter extended beyond Inboard's financial capabilities. The $8 million investment from 2017 was insufficient to cover the prolonged development period, leading to financial strain and contributing to the company's downfall.
Impact on Investors and Market
Inboard Technology's failure left investors with significant financial losses and disrupted the electric skateboard market. Despite initial success and $12.87 million in funding, the company's pivot to e-scooters strained resources, leading to liquidation. This decision shocked stakeholders and highlighted the volatile nature of the lightweight electric vehicle sector.
Lessons Learned from Inboard Technology's Failure
Resource Allocation: Ensure adequate resources before pivoting to new products to avoid overextending financial and operational capacities.
Investor Relations: Maintain transparent and reliable communication with investors to secure necessary funding and avoid unexpected financial shortfalls.
Market Timing: Align product development timelines with market demands to prevent prolonged development periods that strain finances.
Focus on Core Strengths: Leverage existing expertise and market position rather than diversifying too quickly into unfamiliar territories.
Risk Management: Develop a robust risk management strategy to navigate unforeseen challenges and financial uncertainties.
Customer Feedback: Prioritize customer feedback to ensure new products meet market needs and expectations.
Scalability: Plan for scalable growth to manage increased demand without compromising quality or financial stability.
Frequently Asked Questions about Inboard Technology
What led to Inboard Technology's liquidation?
The pivot to electric scooters stretched financial resources, and investors pushed for liquidation despite the company hitting key goals.
What were the key features of Inboard's M1 electric skateboard?
The M1 featured in-wheel motors and a swappable battery, offering a seamless and extended riding experience.
How did Inboard Technology start?
Founded in 2015, Inboard raised over $400,000 on Kickstarter for its M1 electric skateboard, featuring innovative in-wheel motors.
Looking Ahead
As the story of Inboard Technology illustrates, navigating the complexities of winding down a startup can be fraught with challenges. For founders looking to avoid similar pitfalls, consider how Sunset can help manage the legal, tax, and operational burdens, allowing you to move on to your next venture seamlessly.
