Startup Advice — Here’s why you might raise $100M+ and still fail.
Juicero did raise $125M in funds. To raise a single penny for your idea is a feat I believe. I mean no one is just handing out their money to you just like that.
However, The company shuttered after 6-months and gave 100% refunds to its customers.
So, What went wrong?
Product: Juicero launched a wifi-connected juicer that extracted juice from their proprietary single-use bags.
Umm.. a strange idea indeed.
The team behind the idea assumed that people would pay $700 for their product.
1st mistake — They assumed.
The value of the startup tanked when it was established that the bags could be squeezed with hands with just as much efficiency.
Even if we agree that the problem they were targeting was a real one, their proposed solution became an expensive and thus undesirable choice.
2nd mistake — They created a product that no one wanted.
Why did Juicero fail?
- Didn’t do proper market research. Thus, ended up overestimating the price that people would be willing to pay for their product.
- Lacked in solution validation as well. The solution they created wasn’t a viable one for its targeted customers.