AR motorcycle helmet company Skully looks like it's hit a wall

By midian182 ยท 8 replies
Jul 28, 2016
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  1. Skully, the hardware startup behind the augmented reality motorcycle helmet that raised $2.4 million on Indiegogo, has shut down operations, according to TechCrunch. The move follows the ousting of CEO Marcus Weller along with his brother and fellow co-founder Mitch earlier this month.

    With its promise of a heads-up display, 180-degree blind-spot camera, GPS, and other audio/visual features, the Skully AR-1 raised more than $14 million from investors and crowdfunding backers. But the shutdown means the 3000+ people who pre-ordered a helmet are now unlikely ever to get one, and sources says the chances of them receiving a refund are slim.

    The closure is said to have come about following a botched deal with Chinese firm LeSports, which was apparently looking to acquire Skully as the startup was rapidly running out of cash. A manufacturing issue that slowed down shipment of the AR-1 also contributed to the company's problems.

    “I’m shocked and deeply saddened that they would now shut this company down,” Weller told TechCrunch. “We were raising a Series B to continue raising capital but then we had a buyer…I’m almost dubious to this.”

    It was only two weeks ago when Skully sent out an email promising that the AR helmets were on their way. “Over 400 AR-1 units will be in customers’ hands by the end of July and all pre-orders will be fulfilled by the end of September. We have 100% confidence in our delivery schedule and will continue to keep you in the loop. Please stay tuned because we have very exciting announcements coming up,” read the message.

    While a a total shutdown looks imminent, senior members of staff are still hoping the company’s fortunes will turn around. “The Skully executive team is working diligently on closing a round of funding so that we can continue to fulfill our pre-orders and delight our customers,” said marketing VP Carlos Rodriguez.

    Skully’s website is still up, but all the AR-1 helmets are now showing as “Sold Out.”

    Permalink to story.

  2. EClyde

    EClyde TS Evangelist Posts: 1,301   +429

    I'm doing the electric fork and looking for investors
  3. EClyde

    EClyde TS Evangelist Posts: 1,301   +429

  4. Skyyy

    Skyyy TS Rookie Posts: 21   +7

    It's probably not a good idea to play Pokemon and drive a motorcycle anyway. Seriously, though, if it's a good product, I hope they sell out to a larger company that can pick up on it.
  5. SupportThe2ND

    SupportThe2ND TS Rookie

    Crowdfunding, The pyramid scheme of the 21st century.
  6. Reehahs

    Reehahs TS Guru Posts: 574   +316

    On a flip of a coin.
  7. fastvince

    fastvince TS Enthusiast Posts: 70   +19

    Wow...14 million and not even 1 helmet. were they gold plated !?
    Guess after you pay the founders salaries,office and equipment and new tesla's for the exec's
    there wasn't much left
    for R&D.
  8. HyperPete

    HyperPete TS Enthusiast Posts: 28   +11

    I just checked out the AR-1 page. It shows the following: Estimated delivery is November 2016.
  9. Tanstar

    Tanstar TS Evangelist Posts: 613   +175

    Unless the Founder and Co-Founder spent all the money, ousting them before closing down seems stupid. It also seems stupid that there was a Founder, Co-Founder, VP of Marketing, and apparently a full board to be able to kick out the founders. If you haven't delivered a single product yet then you really don't need that much bureaucracy already in place.

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