Smartwatch maker Pebble is reportedly in some financial trouble, according to sources close to the company. TechCrunch reports that Pebble is having difficulties maintaining its growth and has turned to investors for a $5 million loan and a $5 million line of credit. Unfortunately for Pebble, it seems that most Venture Capitalists are turning down the company's request for funds.
Pebble just launched a successful Kickstarter campaign back in February and raised over $20 million with over 75,000 backers for the new Pebble Time smartwatch. The company received about $18 million after Kickstarter fees, but despite its success, it still needs additional funding to maintain growth and "stay afloat."
The source also noted that many employees were not satisfied with the direction the company was headed, especially with competition intensifying as Apple, Google, and more enter the smartwatch category. On the other hand some employees were cautiously optimistic that things would turn around and the company would find funding.
“We’re a young company. The outlook for Pebble is very positive,” said a current employee. “It’s been a remarkable journey thus far.”
It will definitely be interesting to see how, or if, competitors respond to Apple Watch and how they still remain successful in such a rapidly growing category.
Pebble just launched a successful Kickstarter campaign back in February and raised over $20 million with over 75,000 backers for the new Pebble Time smartwatch. The company received about $18 million after Kickstarter fees, but despite its success, it still needs additional funding to maintain growth and "stay afloat."
The source also noted that many employees were not satisfied with the direction the company was headed, especially with competition intensifying as Apple, Google, and more enter the smartwatch category. On the other hand some employees were cautiously optimistic that things would turn around and the company would find funding.
“We’re a young company. The outlook for Pebble is very positive,” said a current employee. “It’s been a remarkable journey thus far.”
It will definitely be interesting to see how, or if, competitors respond to Apple Watch and how they still remain successful in such a rapidly growing category.