Rumors abound over Pebble’s financial health now that the Apple Watch has landed

Rumors abound over Pebble’s financial health now that the Apple Watch has landed
As with all rumors, it is always best to take them with a grain of salt, but word around Silicon Valley is that Pebble is looking for cash, even after blockbuster crowdfunding campaigns for its products.

Sources have apparently passed on to TechCrunch that the company is having trouble keeping the wind in its sails, and that Silicon Valley venture capital firms have been declining to infuse Pebble with additional funding.

Pebble has since gone to the bank and signed for a $5 million loan, and an additional $5 million line of credit. The company employs more than 150 and is still hiring. Managing growth in such a way is not uncommon, and thus is arguably a good sign, but to amass debt of that magnitude for a young company when VC money is flowing strongly throughout the tech sector, it raises more than a few eyebrows.

Even after reaching its most recent crowdfunded goal for the Pebble Time in 17 minutes, and then going on to raise $20 million ($18m after fees), there is apparently restlessness among the ranks that are concerned over how Pebble addressed (or did not address) competition from instant hit Apple Watch, Android Wear manufacturers, LG’s webOS powered Urbane, even Samsung’s Tizen OS wearables.

Each of those companies dwarf Pebble, and now that the Apple Watch is on the scene, ostensibly surpassing all Android Wear sales combined, the company is just a dot.

Despite all that, no one is calling it quits just yet, and anonymous sources at Pebble are reportedly “cautiously optimistic.” The wearable space is still too young to call winners and losers, but Pebble may have to adopt a more nimble and innovative position that does not rely on crowdfunding to bring future products to market. Of course, to do that, it helps to have a healthy cash flow and funding source.

source: TechCrunch

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8 Comments

1. AlikMalix unregistered

Thermonuclear war, and its collateral damage..

4. sgodsell

Posts: 7367; Member since: Mar 16, 2013

I have all kinds of smart watches, from the original Sony SmartWatch which came out before the Pebble, then I got the Pebble, but after that Samsung came out and I two of them. Then Android Wear came out and I got a few Android Wear devices. I even ordered the new Pebble Time. I think a few things that they added to the new Pebble Time brought them up to what the others are currently offering, like a color display, a microphone for voice input. Which the others are currently offering as well. However Pebble has the longest battery life, and it will be interesting to see what happens with their SDK for their bands. When developers can actually add different kinds of band to say add a blood sugar monitor on the band, or extra batteries embedded in the band. This is very unique and will be interesting to see where it will go. Considering no one else is offering anything like that.

2. TheGunnyPT

Posts: 252; Member since: Feb 12, 2015

I like the new Pebble Time, but I just rather wait to see the 2nd gen of Moto 360 and then decide on which one I get. And in terms of getting a smartwatch for the sake of social success, a Apple Watch or any other smart watch makes more success than Pebble (I heard some people even calling it childish when one of my co-workers used it) Best case scenario you get your PT confused with Apple Watch, but quickly dismissed due to the display being E-Papper And let's be honest here, you easily can buy a Gear or a Apple Watch than a Pebble. Atleast where I live there's publicity on those everywhere and Pebble is not even being sold by any retailers. Only chance is by ordering online and hoping it doesn't get stuck in customs, if so happens you need to pay additional $$.

5. UglyFrank

Posts: 2194; Member since: Jan 23, 2014

You would buy a watch purely for social status?

6. DeusExCellula

Posts: 1390; Member since: Oct 05, 2014

fcking customs. I ordered a Nexus 7 back in january and fcking customs has been sitting on it . 5 months and i have yet to hear word of it-_-

3. Neros

Posts: 1016; Member since: Dec 19, 2014

RiP Pebble

7. Doakie

Posts: 2478; Member since: May 06, 2009

Sucks because I love by Pebble Classic and find my LG G Watch to be pretty useless.... I'm probably going to pick up a Pebble Time once I find a good deal on one. The Google Now interface is pretty crappy as a Smartwatch UI in my opinion.

8. eyedoc81

Posts: 56; Member since: May 20, 2011

I've pretty much decided on a Pebble Time when it launches. Something about it is just different and fun, even if it isn't a super bright touch screen. I think Pebble will be fine. This isn't their first launch, so I think they have an idea what they are doing by now.

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