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The problem is there are huge gaps between having a great idea, creating something really impressive, and bringing a product to market successfully and selling
by AJ007 9y ago
The problem is there are huge gaps between having a great idea, creating something really impressive, and bringing a product to market successfully and selling at scale. That last step is the most difficult of all. Very few companies pull it off.
The best I can tell, once a dev kit is released they still have 3 or 4 years before they will be selling their hardware at a meaningful scale - if everything goes alright. Their burn rate is way too high, guessing by how many people they hired. They will need to have an IPO or they are expecting to raise Uber level funds. Maybe that’s realistic but I wouldn’t bet on it.
- swyx 9y ago>They will need to have an IPO or they are expecting to raise Uber level funds. neither is possible with no revenue or only dev-kit revenue. you are overlooking the third option: do an ICO.
- AJ007 9y agoThat might be the most realistic solution, ironically. They might end up in the bin of start up death from pre-mature scaling. I have no doubt that someone is going to win big in AR. Apple can hit the ground running with all of these ARKit apps. Unless Apple really screws something up, they will have the software advantage by a wide margin. I'm not convinced that either Google's Series B investment in 2014 or Sundar Pichai's board seat indicate that Google believe's Magic Leap has a high probability of success. The series B was now quite a long time ago. Google has had no trouble getting in to the same line of business as their own investments or companies were the CEO sat on the board.
- sbarre 9y agoOr get purchased by a larger entity