Wattage was an innovative platform designed to democratize hardware creation, allowing users to design and sell customized electronic devices through a simple drag-and-drop interface. Despite initial enthusiasm and funding, the company struggled with market traction and technological limitations, ultimately leading to its closure.
What Was Wattage?
Wattage's main product was an online platform enabling users to design and sell customized electronic devices through a drag-and-drop interface. Its unique value proposition lay in democratizing hardware creation, making it accessible to non-experts. Notably, Wattage secured investor refunds, built working prototypes, and attracted 1,600 newsletter sign-ups.
What Happened to Wattage?
The story of Wattage is a compelling tale of ambition, innovation, and the harsh realities of the startup world:
Initial Vision and Ambition: Wattage was founded with the goal of democratizing hardware creation, allowing anyone to design and sell customized electronic devices. The company aimed to simplify the process, making it as easy as writing a blog post.
Innovative Platform: The core of Wattage's offering was a browser-based platform that enabled users to create highly customized hardware. They planned to eliminate supply chain complexities and eventually include a marketplace and programming capabilities.
Struggles with Traction: Despite their innovative approach, Wattage struggled to show traction and validate market interest. This lack of traction made it difficult to secure the necessary investment to move forward.
Funding Challenges: The company faced significant difficulties in raising venture capital, receiving conflicting feedback from investors. They also decided against launching a crowdfunding campaign due to uncertainties in product costs and the risk of financial loss.
Technological Limitations: The technology available at the time was not advanced enough to meet the diverse needs of their potential customers. The quality of their prototypes was insufficient, and 3D printing was too slow and expensive to be viable.
When Did Wattage Shut Down?
Wattage shut down after a year of development, as announced in a blog post by Jeremy Bell on May 5, 2015. The company ran out of cash and was unable to secure additional investment, leading to its closure.
Why Did Wattage Shut Down?
Inability to Secure Investment: Despite their efforts, Wattage struggled to secure the additional investment needed to continue operations. Jeremy Bell noted that they faced conflicting feedback from investors, with some saying they were raising too little and others saying they were raising too much. This inconsistency made it difficult to close funding rounds.
Lack of Market Traction: Wattage failed to demonstrate sufficient market interest in their product. Bell admitted, "I suppose our failure can be summed up quite easily: An inability to show traction." Without clear validation from potential customers, it was challenging to justify further investment and development.
Insufficient Focus: The company struggled with focusing their efforts on a single, highly-customizable product. Instead, they spread their resources too thin across multiple initiatives. This lack of focus diluted their impact and made it harder to achieve significant milestones that could attract investors and customers.
Challenges in Raising Venture Capital: Wattage's pitch deck went through over 60 revisions but still faced criticism for not being crisp and focused. This made it difficult to convince venture capitalists to invest. Bell mentioned that the feedback varied significantly between regions, complicating their fundraising efforts.
Premature Decision Against Crowdfunding: The team decided against launching a crowdfunding campaign due to uncertainties in product costs and the risk of financial loss. This decision, while cautious, eliminated a potential avenue for raising funds and validating market interest early on.
Lessons Learned from Wattage's Failure
Validate Market Interest Early: Ensure there is a clear demand for your product before investing significant resources.
Focus on Core Offerings: Concentrate efforts on a single, well-defined product to avoid diluting impact and resources.
Refine Your Pitch: Develop a crisp, focused pitch deck to effectively communicate your vision to investors.
Consider Crowdfunding: Use crowdfunding to gauge market interest and secure early-stage funding, despite potential risks.
Adapt to Feedback: Be prepared to pivot based on investor and customer feedback to better align with market needs.
Manage Technological Expectations: Ensure the technology you rely on is mature enough to meet your product's requirements.
Secure Sufficient Funding: Plan for adequate financial runway to sustain operations and development through initial challenges.
We Shut Down Startups
Wattage's journey underscores the harsh realities of the startup world, where even the most innovative ideas can falter. If you're facing similar challenges, Sunset can help you navigate the complexities of winding down your startup.
Sunset takes care of all the legal, tax, and operational burdens, allowing you to avoid penalties and reduce liabilities. Book a demo today to move on to your next venture with peace of mind.
.png)
