What Happened to Inboard Technology & Why Did It Fail?
January 25, 2025
Inboard Technology, founded in 2015, was an electric skateboard startup known for its M1 model featuring in-wheel motors and swappable batteries. Initially successful, the company raised significant funds and even appeared on Shark Tank. However, a pivot to electric scooters and financial troubles led to its eventual liquidation.
What Was Inboard Technology?
Inboard Technology's main product was the M1 electric skateboard, featuring in-wheel motors and swappable batteries. This unique design offered a smoother ride and easy battery changes. Notable achievements include raising over $12 million in funding and securing a large order from a major European scooter operator.
What Happened to Inboard Technology?
The story of Inboard Technology is a classic tale of innovation, ambition, and unforeseen challenges:
Initial Success and Funding: Inboard Technology was founded in 2015 and quickly raised over $400,000 on Kickstarter for its M1 electric skateboard. The company further secured $750,000 on Shark Tank and an $8 million Series A round led by Upfront Ventures.
Innovative Products: The M1 electric skateboard featured in-wheel motors and a swappable battery, setting it apart from competitors. Inboard also planned to launch the G1 electric scooter, promising a smoother and more durable ride for consumers.
Challenges in Pivoting: The shift to the electric scooter market did not go as planned, with development timelines stretching the company's financial resources thin. Despite hitting key goals, investors pushed for liquidation.
Financial Struggles: Inboard faced stiff competition from companies like Boosted and struggled to secure additional loans. The turbulent market for lightweight electric vehicles further exacerbated their financial difficulties.
Liquidation and Layoffs: Inboard Technology worked with Sherwood Partners to liquidate its assets, laying off all 24 employees. The company's website was taken down, and customer service channels were closed, marking the end of its operations.
When Did Inboard Technology Shut Down?
Inboard Technology shut down after its board of directors signed an agreement with the liquidation firm Sherwood Partners on October 2nd, 2019. This decision led to the layoff of all 24 employees and the closure of the company's website and customer service channels.
Why Did Inboard Technology Shut Down?
Failed Pivot to Scooters: Inboard Technology's shift from electric skateboards to electric scooters did not go as planned. The company secured a large order from a major European scooter operator, which led to a pivot away from direct consumer sales. This strategic change stretched their financial resources thin and ultimately contributed to their downfall.
Extended Development Timeline: The development timeline for the G1 electric scooter exceeded the company's financial runway. According to former CEO Ryan Evans, the timeline "outstretched" their financial resources, leaving the company unable to sustain operations. This delay was a significant factor in their financial struggles.
Unfulfilled Investor Promises: Investors who had assured Inboard of additional loans did not follow through, leading to a financial crisis. Ryan Evans mentioned receiving "multiple assurances" from investors, but when these promises were not met, the company was left with "no time and little options," forcing them into liquidation.
Market Turbulence: The market for lightweight electric vehicles proved to be more turbulent than anticipated. Ryan Evans noted that even multi-billion dollar startups and public companies faced significant challenges in this market. This instability made it difficult for Inboard to secure a stable financial footing.
Investor-Driven Liquidation: Despite hitting key goals, investors decided to push Inboard into liquidation. This decision came as a shock to the company, leaving them with no time to explore other options. The board of directors signed an agreement with Sherwood Partners, leading to the layoff of all employees and the closure of the company's operations.
Lessons Learned from Inboard Technology's Failure
Adaptability: Ensure your business model can adapt to market changes without overextending financial resources.
Investor Relations: Maintain transparent and reliable communication with investors to avoid unfulfilled financial promises.
Market Research: Conduct thorough market analysis to anticipate potential turbulence and competition.
Financial Planning: Develop a robust financial plan that accounts for extended development timelines and unexpected delays.
Strategic Focus: Avoid drastic pivots that divert focus from core competencies and established markets.
Resource Management: Efficiently manage resources to prevent financial strain during product development phases.
Contingency Plans: Always have contingency plans in place to navigate unforeseen challenges and investor decisions.
We Shut Down Startups
Inboard Technology's failure underscores the complexities and challenges startups face, especially when pivoting or dealing with financial instability. If you're navigating similar turbulent waters, Sunset can help you manage the legal, tax, and operational burdens of winding down your startup.
Don't let the stress of liquidation overwhelm you. Book a demo with Sunset today to ensure a smooth and compliant shutdown process, allowing you to move on to your next venture with peace of mind.
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