Wattage
Wattage was an ambitious platform that aimed to make 'bespoke hardware' accessible. The vision was a drag-and-drop web builder that allowed non-engineers to design their own electronic devices (like speakers or clocks), which Wattage would then assemble using 3D printing and modular electronics. Despite the innovative concept, the company folded when it failed to secure the funding necessary to sustain its high-overhead operations.
The Autopsy
| Section | Details |
|---|---|
| Startup Profile | Founders: Jeremy Bell Funding: Self-funded / Seed interest from Angelist |
| Cause of Death | Financing Failure: The Funding Wall: The founders spent months pitching to over 30 investors. While many 'loved the idea,' no one was willing to lead the round. In hardware, investors are notoriously risk-averse unless there is massive pre-existing traction. Market Fit: Market Skepticism: VCs doubted that there was a large enough audience of people who wanted to design their own hardware from scratch at a premium price point. Other: The 'Expertise' Gap: The team was composed of elite designers and software engineers, but lacked a 'hardware veteran' who could prove to investors that they could scale manufacturing profitably. |
| The Critical Mistake | Lack of a 'Physical' Proof of Concept: The team spent a year building a world-class software builder and branding, but they didn't have a finished, mass-produced physical product to show. They were selling a 'process' to investors who wanted to see a 'product.' |
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Deep Dive
In the Medium post, 'Well, we failed,' founder Jeremy Bell provided a brutally honest look at the 'Valley of Death' for hardware startups. The 'Vicious Cycle' of Funding Wattage was caught in a classic startup loop: Investors wanted to see 'traction' (orders) before investing, but the team needed the investment to build the factory and fulfill those orders. Because they refused to use Kickstarter (viewing it as a 'marketing gimmick'), they had no way to bridge the gap. The Complexity of Customization Wattage wanted to allow users to change the shape of their devices. This meant every 3D print was different, making quality control and assembly a manual, non-scalable nightmare. They were fighting the laws of industrial economics. The Final Decision In July 2015, the founders looked at their remaining personal savings and the lack of a lead investor and decided to 'call it.' They chose to shut down gracefully, release their work to the community, and help their team find new roles.
Key Lessons
Hardware requires a Lead: You can't build a hardware company on 'maybe' money. Without a lead investor to set the terms, follow-on investors will never commit.
Software Skills ≠ Hardware Success: Building a beautiful website for hardware is easy; building a supply chain for custom 3D-printed electronics is incredibly hard.
The 'Niche' Trap: 'Bespoke' is a luxury term. If your cost of goods sold (COGS) is too high, you aren't a tech startup; you're a high-end boutique, which is much harder to venture-scale.