Consumer electronics company Jawbone had more than enough money to take on Fitbit and other health-tracking devices in the “wearables” market.That may have ended up being its biggest problem.Top-tier venture capital firms Sequoia, Andreessen Horowitz, Khosla Ventures and Kleiner Perkins Caufield & Byers, and then a sovereign wealth fund, invested hundreds of millions of dollars in Jawbone, lifting its valuation to $3.2 billion in 2014.Ultimately, all that money couldn’t save San Francisco-based Jawbone, whoch began liquidating proceedings in June after its fitness-tracker product failed to take off. It now ranks as the second largest failure among venture-backed companies, based on total funding raised, according to the research firm CB Insights.Jawbone’s fall after raising more than $900 million provides a stark example of how the flood of cash pouring into Silicon Valley can have the perverse effect of sustaining companies that have no future, technology executives and financiers say.
Källa: Jawbone’s demise a case of ‘death by overfunding’ in Silicon Valley | Reuters
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