Consumer electronics startup Jawbone has seen great success over the past couple of years securing more than $200 million in venture capital funding and has seen the release of popular products the Jambox wireless speaker and the Up fitness-tracking wristband soar. However it now appears Jawbone has become a victim of its own success. Earlier this year the company highlighted the fact that demand was starting to grow and eventually considerable demand became such a problem that the company was unable to scale its operations fast enough to meet demands – a nice problem to be having.
As a result of this it was adamant that the company needed funding and fast, but instead of turning to their investors for the finance, the company took it upon themselves to generate up to $93 million from debt funding, because they thought equity fundraising would take too long. However shortly after this Jawbone did take to investors and ended up receiving a further $20 million from existing VC’s.
Now with the busy shopping period just around the corner, it looks likely that Jawbone will be able to keep up with their supply and demand chains and should be set for a very successful future.
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