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Boosted Board, a once-prominent electric skateboard company, is now facing financial woes, leaving us to ponder its downfall and whether Future Motion, the creator of Onewheel, will follow suit. Venture capital plays a pivotal role in understanding this scenario: startups raise funds, fuel growth, and eventually face immense pressure to achieve rapid, often unsustainable growth, driven by investors seeking substantial returns. This aggressive approach can lead to poor decision-making and wasteful expansion, as seen with Boosted’s venture into scooters, which contributed to its financial difficulties.
Boosted’s decline is attributed to increased competition, questionable management decisions, and the burden of substantial venture capital funding. Future Motion, on the other hand, raised a more modest $3.2 million, reducing the pressure for astronomical growth. With investors like the senior VP of marketing at GoPro, the valuation of Future Motion in 2015 was estimated at $16 million. The company has not sought additional funding for four years, potentially signaling an organic growth strategy.
The future for Onewheel may not involve going public due to its niche market. This leaves the options of selling the company or facing financial challenges. Selling to a Chinese company is a plausible outcome, which could expand the product’s reach while lowering costs, though potential quality concerns exist. Ultimately, venture capital’s influence, for better or worse, is significant, as we examine the paths of Boosted and Future Motion in the electric mobility industry.
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