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Hello's sleep-tracking Kickstarter hit collapses | Hello's sleep-tracking Kickstarter hit collapses |
(about 2 hours later) | |
A sleep-tracking tech start-up founded by a Briton, which was one of Kickstarter's biggest success stories, has collapsed. | A sleep-tracking tech start-up founded by a Briton, which was one of Kickstarter's biggest success stories, has collapsed. |
Hello raised more than $2.4m (£1.9m) for its Sense bedroom monitor via the crowdfunding site in 2014, and went on to attract a further $40.5m. | Hello raised more than $2.4m (£1.9m) for its Sense bedroom monitor via the crowdfunding site in 2014, and went on to attract a further $40.5m. |
Private backers included Singapore's sovereign wealth fund Temasek and Facebook Messenger chief David Marcus. | Private backers included Singapore's sovereign wealth fund Temasek and Facebook Messenger chief David Marcus. |
Hello confirmed it would "soon be shutting down", via Medium's news site. | Hello confirmed it would "soon be shutting down", via Medium's news site. |
"The past few months have been incredibly tough, especially on the team of Hello. For that I'm incredibly sorry," wrote its chief executive, James Proud. | "The past few months have been incredibly tough, especially on the team of Hello. For that I'm incredibly sorry," wrote its chief executive, James Proud. |
"Hello has been my whole life for five years, and I couldn't have asked for a better group of people to have travelled with." | "Hello has been my whole life for five years, and I couldn't have asked for a better group of people to have travelled with." |
The product had been on sale for $149. | The product had been on sale for $149. |
Customers have been told that the company is "unsure" whether the online service that supports the hardware will continue to operate - it would need to be acquired by a third-party. But they can export their existing data. | Customers have been told that the company is "unsure" whether the online service that supports the hardware will continue to operate - it would need to be acquired by a third-party. But they can export their existing data. |
Owners have also been advised to request refunds from shops they bought the devices from. | Owners have also been advised to request refunds from shops they bought the devices from. |
However, if they purchased the kit directly from Hello itself, they have been told there will be no way to get their money back. | However, if they purchased the kit directly from Hello itself, they have been told there will be no way to get their money back. |
According to the news site Axios, Hello had held "fire-sale talks" with the fitness tracker specialist Fitbit, but failed to reach a deal. | According to the news site Axios, Hello had held "fire-sale talks" with the fitness tracker specialist Fitbit, but failed to reach a deal. |
A source close to Hello said that the firm - along with some other hardware developers - had found it more difficult to raise funds in recent months. | |
Missed lifelines | Missed lifelines |
Sense comprised: | Sense comprised: |
The equipment produced a unique score for the previous night's sleep and aimed to wake the owner up at the best point in their sleep cycle. | The equipment produced a unique score for the previous night's sleep and aimed to wake the owner up at the best point in their sleep cycle. |
It had gained voice controls in November, in its last major update. | It had gained voice controls in November, in its last major update. |
Mr Proud - who was born in London - gave up plans to go to university to create the gadget and moved to California after receiving a grant from Peter Thiel, the Silicon Valley entrepreneur who co-created PayPal and now acts as an adviser to President Trump. | Mr Proud - who was born in London - gave up plans to go to university to create the gadget and moved to California after receiving a grant from Peter Thiel, the Silicon Valley entrepreneur who co-created PayPal and now acts as an adviser to President Trump. |
The Briton had originally planned to create a wearable sleep-tracking gadget. | The Briton had originally planned to create a wearable sleep-tracking gadget. |
But he switched focus to create a table-top device after deciding that this would make customers more likely to keep using it. | But he switched focus to create a table-top device after deciding that this would make customers more likely to keep using it. |
"We spend a third of our day [asleep]," he told the BBC in 2014, "It's the most critical part of the day." | "We spend a third of our day [asleep]," he told the BBC in 2014, "It's the most critical part of the day." |
He managed to attract money from other big name backers, including ex-Twitter chief executive Dick Costolo, Facebook's virtual reality vice-president Hugo Barra and Spotify's head of special projects, Shakil Khan. | He managed to attract money from other big name backers, including ex-Twitter chief executive Dick Costolo, Facebook's virtual reality vice-president Hugo Barra and Spotify's head of special projects, Shakil Khan. |
But Sense struggled against competition from bigger brands, including Withing's Aura sleep-tracking alarm clock and Fitbit's sleep-tracking wristwear. | But Sense struggled against competition from bigger brands, including Withing's Aura sleep-tracking alarm clock and Fitbit's sleep-tracking wristwear. |
In addition, Apple acquired another rival, Beddit. | In addition, Apple acquired another rival, Beddit. |
"Kickstarter can give you a good basis to get your product off the ground and an awful lot of PR, but translating that into a successful commercial product is difficult," said Ben Wood, from the CCS Insight tech consultancy. | "Kickstarter can give you a good basis to get your product off the ground and an awful lot of PR, but translating that into a successful commercial product is difficult," said Ben Wood, from the CCS Insight tech consultancy. |
"Going to the next level, finding more funding and getting backing - or a takeover offer - from a big company is often the lifeline that these companies need to keep going." | "Going to the next level, finding more funding and getting backing - or a takeover offer - from a big company is often the lifeline that these companies need to keep going." |
The failure has not deterred another British entrepreneur currently using Kickstarter to raise funds for a new sleep-tracking device. | The failure has not deterred another British entrepreneur currently using Kickstarter to raise funds for a new sleep-tracking device. |
Fares Siddiqui has already secured more than $100,000 for Circadia, and hopes to distinguish his product by selling an add-on Smart Therapy Lamp designed to "tune" users' body clocks. | Fares Siddiqui has already secured more than $100,000 for Circadia, and hopes to distinguish his product by selling an add-on Smart Therapy Lamp designed to "tune" users' body clocks. |
"The market is too saturated now with products that just do tracking, and people want to be able to do something about how they sleep," he told the BBC. | "The market is too saturated now with products that just do tracking, and people want to be able to do something about how they sleep," he told the BBC. |
"Treatment is important and [Hello] missed that key part of the loop." | "Treatment is important and [Hello] missed that key part of the loop." |
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