#3: Take a brief time-out if you can. A failed business is sort of like a failed relationship. You need time to heal. If you can't afford a brief time-out, try to find some consulting work until you've had a chance to gain more perspective. The worst thing you can do is make another long term career decision in the mental space you're in after failing at something. Do something to help rebuild your confidence first.
Thankfully, Norwegians are in most cases very trustworthy and transparent already. They are also very pragmatic. So ending your startup as gracefully as possible is especially important. In a small country people talk and word travels fast. You would much rather people say, “Yes, it’s unfortunate things didn’t work out but he/she did their best” than something like “Wow, yeah that was a total shit show all the way to the end.” So be honest and fair as you do, at least the best you can as things are collapsing around you.
Juicero’s demise was not unexpected. Its collapse was the consequence of unsustainable costs, unflattering headlines and a bungled product launch. After attracting about $134 million in funding from such illustrious investors as Google Ventures and Kleiner Perkins Caufield & Byers, Juicero was losing about $4 million a month. Four years after its founding, the startup was unable to find new backers willing to fund its ambition of making fresh juice accessible to all.
We plan to showcase our solution within a specific use case for both Daimler and Porsche production vehicles at the venue. In addition, we are planning to showcase the integration of our solution with HPE (DCX now) SOC infrastructure in real-time. We are still in discussions with ZF. Our primary goal is to show that our technology is ready for deployment in production vehicles today and demonstrate its effectiveness and value proposition to OEMs, Tier 1 suppliers, as well as service providers to the automotive industry.
One caveat: the usual rules of searching for product market fit through limited customer acquisition and testing don’t apply if you have a network effects business or marketplace such as LinkedIn or Airbnb. For two-sided market products like these, you need to achieve some semblance of scale, with liquidity on both sides, to actually test whether your product works and people keep using it. Products in which the value can be experienced regardless of network effects, such as HubSpot or Evernote, show indications of product-market fit before scale. For this reason, for a two sided business model, you need to get to some critical mass and refine the product along the way to get to a must-have product.