Sansaire was a Seattle-based startup known for its sous vide cooking devices, which allowed users to cook food in precisely controlled water baths. The company initially gained traction with a successful Kickstarter campaign but faced challenges with production and leadership changes, ultimately leading to its closure in 2018.
What Was Sansaire?
Sansaire's main product was its sous vide cooking devices, including the Sansaire Sous Vide Machine and the Sansaire Delta. Their unique value proposition was precise temperature control for restaurant-quality cooking at home. Notably, they raised $256,804 on Kickstarter and garnered $1.08 million in total funding.
What Happened to Sansaire?
The story of Sansaire is a compelling tale of innovation, challenges, and eventual closure:
Initial Success and Popularity: Sansaire's first product, the Sansaire Sous Vide Machine, quickly became one of the most popular culinary-oriented Kickstarter projects. The campaign raised $256,804 from 1,314 backers, showcasing strong initial interest and support.
Innovative Product Line: The company introduced sous vide cooking devices, including the original Sansaire Sous Vide Machine and the anticipated WiFi-enabled Delta device. These products aimed to bring restaurant-quality cooking to home kitchens with precise temperature control.
Production Challenges: Sansaire faced significant hurdles with its new production facility, leading to a breakdown in the relationship. This disruption, coupled with exhausted funding and manufacturing routes, severely impacted the company's ability to deliver its products.
Leadership Instability: Frequent changes in leadership further destabilized Sansaire. Lukas Svec returned as CEO after a series of departures by previous CEOs, but the instability contributed to the company's struggles.
Eventual Closure: Despite the initial success and innovative products, Sansaire announced it would cease development of the Delta device and ultimately shut down. The combination of production issues, funding exhaustion, and leadership changes led to the company's decline and closure.
When Did Sansaire Shut Down?
Sansaire announced its shutdown on February 21, 2018, ceasing production of its new WiFi sous vide device, the Delta. The decision was driven by a breakdown in the relationship with a new production facility and exhausted funding and manufacturing routes.
Why Did Sansaire Shut Down?
Breakdown with Production Facility: Sansaire's relationship with a new production facility deteriorated, leading to significant disruptions. This breakdown exhausted the company's available funding and manufacturing routes, making it impossible to continue production. CEO Lukas Svec noted that this was a critical factor in the decision to cease development of the Delta device.
Exhausted Funding: The financial strain from the production issues left Sansaire without the necessary resources to move forward. Despite raising $256,804 on Kickstarter, the company could not secure additional funding, which was essential for the Delta device's production. This financial exhaustion was a key reason for the company's shutdown.
Leadership Instability: Frequent changes in leadership further destabilized Sansaire. Lukas Svec, the original CEO, returned after the departure of three other CEOs in a short period. This instability hindered consistent strategic direction and contributed to the company's challenges.
Delayed Production for Funding: Sansaire delayed the production of the Delta device to pursue additional funding after switching manufacturing partners. This delay not only frustrated backers but also strained the company's financial resources, ultimately contributing to its downfall.
Challenges of Crowdfunding: While crowdfunding enabled Sansaire to launch its products, it also came with risks. The company faced significant challenges in meeting backer expectations and managing production timelines, highlighting the inherent risks of relying on crowdfunding for complex hardware projects.
Lessons Learned from Sansaire's Failure
Secure Reliable Production Partners: Ensure strong, dependable relationships with production facilities to avoid disruptions and maintain consistent product delivery.
Maintain Financial Resilience: Plan for financial contingencies and secure additional funding early to navigate unexpected challenges and sustain operations.
Stabilize Leadership: Consistent and stable leadership is crucial for strategic direction and company morale, reducing the risk of internal turmoil.
Manage Crowdfunding Expectations: Clearly communicate with backers and manage timelines effectively to build trust and avoid frustration.
Adapt Quickly to Challenges: Be prepared to pivot and adapt strategies swiftly in response to production or market challenges.
We Shut Down Startups
Sansaire's journey underscores the complexities and challenges that startups face, from production issues to financial strains. If you're navigating similar hurdles, Sunset can help you manage the legal, tax, and operational burdens of winding down your startup.
Don't let the stress of shutting down overwhelm you. Book a demo with Sunset today and move on to your next venture with confidence.
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