It isn’t significant, but it does highlight an important trend: The Rise of the Decacorn.
Juicero was a good product. We have one in the office. I like it! Er, liked it.
But Juicero the company burned through a jaw dropping amount of cash and apparently never really had a business model that worked. Even though they sold $6m+ of juice and devices, the business model appears to have been gross margin negative and unsustainable.
Now, in a different time and age, burning through $100m+ without a real business model would sound … nuts.
But … what if you believe you are funding multiple decacorns ($10b+ companies a year)? And you are buying 10% or more of each decacorn?
Well … then you can afford a few flame outs.
If you are making $1b+ on each decacorn, a few $100m losses are part of the model.
And you are hunting large markets, with crazy founders, that can have huge impacts.
There may be a Juicero 2.0 that comes later that is worth $10b+. If so, it was just the right bet, on the wrong horse, at the wrong time.
It’s a crazy new world, this World of the Decacorn.
A little more here: As Long As We Have 20-30 SaaS Decacorns by 2021 … All Is Good – SaaStr