Jawbone, the originator of wearables, is rumored to have withdrawn from the sports bracelet field, and there are indications that the smashing unicorn is fading. In the past 20 years, the company has survived through continuous financing. The only way out is to be acquired or listed. In the United States, when the financing environment is not prosperous, it is not surprising that the startup loses its voice and declines. But Jawbone is not isolated, it represents a typical way of life for global technology companies.
The latest news about this unicorn is that it plans to transfer the wireless speaker business and is looking for potential buyers. It is even more aware that it is not good. Jawbone has now completely discontinued the Up series of health tracking devices. Existing stocks are sold to third-party retailers, knowing that it is seen as the originator of wearable devices.
According to media reports such as Fortune website and Business Insider, Jawbone refused to comment on the rumors, so I don't know if it is permanently out of the wearable device field. Company CEO Hosain Rahman said in an interview earlier that the company plans to launch a clinical-grade health device. After the company's new round of business reduction, I wonder if this plan will continue to advance? The question currently facing this company is whether it can find a suitable buyer for this round of business sales.
When the wave of wearable devices became popular, Jawbone was considered the originator of this field. Its valuation was once comparable to Uber. In addition to the Up smart bracelet, Bluetooth headset and stereo are the company's three iconic products, but Before the "death signal" was issued, all the signs showed that the company was in trouble.
The first is discount financing. Just in February of this year, Jawbone raised $165 million. According to reports, the valuation is only $1.5 billion, which is 50% discount to the $3 billion in the previous round.
The layoffs before this show that the company is tightening its expenses. Last year, the company announced that it would lay off 60 people, equivalent to 15% of the total number of employees. It also closed the New York office.
In addition, in the past two years, the company has been caught in a lawsuit with its peers: In 2014, foundry Flex called Accused Jawbone to breach the contract and file a lawsuit. Although the lawsuit was settled, Jawbone almost compensated for $20 million; After the listing of Fitbit in the year, Jawbone filed a lawsuit against Fitbit, accusing Fitbit and its employees of stealing the company's trade secrets and infringing patent rights. But recently the court made a ruling in favor of Fitbit.
At this point, the fate of this unicorn has surfaced – it is going to death. But if you look back at the company's 20-year survival path, this is not unexpected.
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