Is the failure of Juicero of any significance? Does its failure highlight any important trends, or will it ultimately be considered irrelevant?
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