Another Control Lesson, Quirky, Inventing Space

[MJ DeMarco]

Quirky was (is) a company who helped inventors bring products to market. The concept seemed really solid, except that it supposedly has burned through millions in funding.

http://nymag.com/daily/intelligencer/2015/09/they-were-quirky.html

Looks like they recently ran out of money and are looking for a buyer.

It also looks like they owe some inventors who as of now, are hanging out to dry.

http://blog.quirky.com/home/2015/9/3/community-update (Read the comments)

Like a broken record on this forum, when you cede control to a higher entity, someone who controls the purse, you set yourself up for a day of reckoning. When the purse is emptied and you are owed money, you most likely you are the one who will take the hit.

 

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[Bellini]

Quirky was (is) a company who helped inventors bring products to market. The concept seemed really solid, except that it supposedly has burned through millions in funding.

http://nymag.com/daily/intelligencer/2015/09/they-were-quirky.html

Looks like they recently ran out of money and are looking for a buyer.

It also looks like they owe some inventors who as of now, are hanging out to dry.

http://blog.quirky.com/home/2015/9/3/community-update (Read the comments)

Like a broken record on this forum, when you cede control to a higher entity, someone who controls the purse, you set yourself up for a day of reckoning. When the purse is emptied and you are owed money, you most likely you are the one who will take the hit.

What a mess.

$185 million is a lot of money to burn through.

I started thinking after I read the articles...

Aside from the control factor, don't you think there had to be a glitch in their business model somewhere?

I wonder if...

A. They were spending too much money on development of the products

B. They were letting these people vote on what to develop who have no understanding of what will actually sell.

- The weird thing about that is with a million member database, and many of those voting, you would think that would be a sign that the market would like it. How can you spend almost $400,000 developing something and only sell 30 units?

C. Maybe they stunk at sales and spent more time on development than they did on sales.

D. Perhaps the way they were running business on the inside was draining their funds.


Still impressive that a 22 year old started Quirky…now having a huge crash and burn at 28.

The guy still has potential if he can learn what he did wrong.



P.S. Yikes about the member comments. They're definitely not happy.

 

[mws87]

P.S. Yikes about the member comments. They're definitely not happy.

No kidding. Some of the comments make it easy to vividly imagine users in mob fashion marching with torches in hand.

 

[MJ DeMarco]

Indiegogo stepping in...

http://www.inc.com/alex-moazed/how-...nd-crowdfunding-to-empower-entrepreneurs.html

 

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