After 16 months of battling against logic and common sense, and despite the 120 million dollars invested in the company by venture capitalists (although in this case would be more accurate to speak of suicide capitalists), Juicero has finally closed its doors .
If you do not know what Juicero, let me introduce you to one of the most absurd ideas in the history of unsalable products . For the modest sum of USD 400 (the starting price was USD 700), until last week could be purchased the flagship product of the eponymous company: a complex electrical machine extracting juice, connected to the Internet and activated via smartphone, which called for run a fruit concentrate cartridges sold by the same company.
You think I'm kidding? Here is a video presenting product:
It's not a scene from Monty Python; It's the real "Juicero" in action. Shortly after its release, someone showed that the juice could be extracted simply squeezing hands the contents of the cartridges, and since then the company became a symbol of a venture capital industry prone to wastage and isolated from reality.
Why all this seems relevant? Because there is much to learn both or more than the best- of the worst ideas often.
Juicero highlights the serious problems of industry immersed in a regulatory environment that forces the concentration of capital in fewer and fewer hands - and decision - making power in fewer and fewer heads. Although the Juicero is far from being the only one, perhaps one of the best examples of what a venture capitalist can do wrong .
Without the support of investors protected from competition by the overwhelming maze of bureaucracy, Juicero would not have lasted 10 minutes in the market -in rigor, the prototype of the machine would never have left the mind of its Creator, but thanks to they have had the opportunity to assist in the development of a process so instructive accounts.
Juicero has taught us what happens when an entrepreneur in love with your product gives back to the market, more money has managed to raise in successive rounds of funding. He has also taught us that although the stupidity of venture capitalists can be infinite, the amount of money they can squander it's not.
Encouraged by the confidence of investors, the brains behind Juicero forgot that already existed practical and economical alternatives to their costosÃsimo monstrosity, and therefore they would face stiff competition in the market. They forgot that the true litmus test for an entrepreneur is failing to convince venture capitalists, but to convince consumers - usually interested in more than just a colorful PowerPoint - presentation of the benefits of a certain product .
Juicero history solves the mystery that has baffled many bitcoiners in recent years. It is easy to understand why AXA, the main investor destra Blockstream , would be capable of anything just to kill Bitcoin, but not so easy to understand why other entities - not necessarily interested in destroying Bitcoin- have invested in Blockstream . At least until you discover that within the current regulatory framework abound venture capitalists willing to throw money like confetti on any fantoche armed with a laser pointer.
Unlike Blockstream, Juicero has not tried to force people to use their product, which places the company at another level of the moral scale. 'I trouble would be unfair to compare señalarlo- failure of an invasion by the failure of a venture that sought to gain the willingness of consumers. That said, the business model of the two companies is equally foolish to all lights .
Here is a list compiled by Mengerian , the similarities between Juicero and Blockstream:
Juicero - Instead of buying juice directly, you need to buy a more expensive bag then make juice pulp through a complex process consisting of multiple stages.
SegWit / Lightning Network - Instead of performing transactions Bitcoin directly to configure a channel Network Lightning then perform transactions through a complex process consisting of multiple stages.
Juicero - The business model requires consumers to buy bags pulp and pressing machine at an artificially high cost.
SegWit / LN - The business model requires users to pay artificially high rates (because the limit on the size of the blocks set by Blockstream / Core) to perform transactions.
Juicers - must be connected to the Internet to function.
SegWit / LN - You need to be connected to the network to ensure that funds are not stolen from Lightning channel.
Juicero - unnecessarily complex, more expensive and less useful methods preexisting.
SegWit / LN - unnecessarily complex, more expensive and less useful methods preexisting.
If you do not know what Juicero, let me introduce you to one of the most absurd ideas in the history of unsalable products . For the modest sum of USD 400 (the starting price was USD 700), until last week could be purchased the flagship product of the eponymous company: a complex electrical machine extracting juice, connected to the Internet and activated via smartphone, which called for run a fruit concentrate cartridges sold by the same company.
You think I'm kidding? Here is a video presenting product:
It's not a scene from Monty Python; It's the real "Juicero" in action. Shortly after its release, someone showed that the juice could be extracted simply squeezing hands the contents of the cartridges, and since then the company became a symbol of a venture capital industry prone to wastage and isolated from reality.
Why all this seems relevant? Because there is much to learn both or more than the best- of the worst ideas often.
Juicero highlights the serious problems of industry immersed in a regulatory environment that forces the concentration of capital in fewer and fewer hands - and decision - making power in fewer and fewer heads. Although the Juicero is far from being the only one, perhaps one of the best examples of what a venture capitalist can do wrong .
Without the support of investors protected from competition by the overwhelming maze of bureaucracy, Juicero would not have lasted 10 minutes in the market -in rigor, the prototype of the machine would never have left the mind of its Creator, but thanks to they have had the opportunity to assist in the development of a process so instructive accounts.
Juicero has taught us what happens when an entrepreneur in love with your product gives back to the market, more money has managed to raise in successive rounds of funding. He has also taught us that although the stupidity of venture capitalists can be infinite, the amount of money they can squander it's not.
Encouraged by the confidence of investors, the brains behind Juicero forgot that already existed practical and economical alternatives to their costosÃsimo monstrosity, and therefore they would face stiff competition in the market. They forgot that the true litmus test for an entrepreneur is failing to convince venture capitalists, but to convince consumers - usually interested in more than just a colorful PowerPoint - presentation of the benefits of a certain product .
Juicero history solves the mystery that has baffled many bitcoiners in recent years. It is easy to understand why AXA, the main investor destra Blockstream , would be capable of anything just to kill Bitcoin, but not so easy to understand why other entities - not necessarily interested in destroying Bitcoin- have invested in Blockstream . At least until you discover that within the current regulatory framework abound venture capitalists willing to throw money like confetti on any fantoche armed with a laser pointer.
Unlike Blockstream, Juicero has not tried to force people to use their product, which places the company at another level of the moral scale. 'I trouble would be unfair to compare señalarlo- failure of an invasion by the failure of a venture that sought to gain the willingness of consumers. That said, the business model of the two companies is equally foolish to all lights .
Here is a list compiled by Mengerian , the similarities between Juicero and Blockstream:
Juicero - Instead of buying juice directly, you need to buy a more expensive bag then make juice pulp through a complex process consisting of multiple stages.
SegWit / Lightning Network - Instead of performing transactions Bitcoin directly to configure a channel Network Lightning then perform transactions through a complex process consisting of multiple stages.
Juicero - The business model requires consumers to buy bags pulp and pressing machine at an artificially high cost.
SegWit / LN - The business model requires users to pay artificially high rates (because the limit on the size of the blocks set by Blockstream / Core) to perform transactions.
Juicers - must be connected to the Internet to function.
SegWit / LN - You need to be connected to the network to ensure that funds are not stolen from Lightning channel.
Juicero - unnecessarily complex, more expensive and less useful methods preexisting.
SegWit / LN - unnecessarily complex, more expensive and less useful methods preexisting.