Notes on Jawbone's massive failure
Last week's news of Jawbone filing for Chapter 7 bankruptcy was met with a collective shrug from most in Silicon Valley, likely because the company's failure took absolutely no one by surprise. But many of its investors are quietly fuming. Some because they've been unable to get information from Jawbone about the liquidation plans, or if Jawbone co-founder and CEO Hosain Rahman plans to bid on some of the assets for his new startup (which also will focus in some way on healthcare wearables). Some just because of the size of the loss and frustration over what they believe was profligate spending on things like private jets while the company struggled to meet its product delivery goals.
- Jawbone appears to be the second-biggest failure ever for a still-private tech startup, in terms of dollars raised.
- Rahman's popularity has not taken a proportionate hit.
- Rahman was sued by J.P. Morgan for defaulting on property-linked loans that he had planned to pay back via selling Jawbone shares, per legal filings.