Skip to main content

Pebble reportedly on the rocks and seeking bank financing

pebble time steel news version 1438252766
Image used with permission by copyright holder
Even with $18 million in the bank, Pebble might be facing issues with its finances, according to TechCrunch.

According to “sources close to the company,” Pebble turned to a Silicon Valley bank in order to get a $5 million loan and $5 million line of credit after venture capital firms turned down its requests for more funding. Even with the company’s wildly successful Kickstarter campaign for the Pebble Time and Pebble Time Steel, which raked in $18 million after fees, sources said the company had to turn to the bank “in order to stay afloat.”

The main reason behind Pebble’s alleged problem with maintaining its growth is related to the firm’s competition, which now includes a slew of Android Wear watches, as well as Apple’s own entry in the wearable market, the Apple Watch.

Even with these financial troubles, however, the firm’s employees are “cautiously optimistic” about Pebble’s prospects. “We’re a young company,” said one anonymous employee. “It’s been a remarkable journey thus far.”

With Pebble currently employing over 150 people, and still hiring, the firm is in a situation where bank financing is not uncommon for the purpose of managing growth. In addition, the wearable market is still a young one that looks to ripen in the next four years, if Cisco has anything to say on the matter. Even so, the indication that Pebble has already amassed significant debt, even with venture capitalists seemingly handing out money left and right, is a bit troubling.

Also consider how Pebble’s competition is now comprised of companies that dwarf it both in size and in name recognition. Whether Pebble is nimble enough to properly respond both to its competition and to its financial troubles is yet to be seen.

Editors' Recommendations

Williams Pelegrin
Former Digital Trends Contributor
Williams is an avid New York Yankees fan, speaks Spanish, resides in Colorado, and has an affinity for Frosted Flakes. Send…
Sidestep banking fees with the nationwide launch of T-Mobile Money
t mobile revvl news

After a limited four-month trial period, T-Mobile is finally launching its T-Mobile Money banking service to the entire U.S., offering a powerful banking service with extra perks, and none of the usual fees.

It's not your usual banking service. As you might expect, it's proudly mobile-first, which means a powerful mobile app on your Android or iOS smartphone. Boot up the T-Mobile Money app and you'll be able to do everything you expect from your banking service, from checking your account balance to sending checks, or even sending direct person-to-person payments. The app also supports Apple Pay, Google Pay, and Samsung Pay, biometric logins -- including fingerprint sensors and Face ID -- and also comes with the ability to lock a lost debit card or send an alert when your balance is low.

Read more
Smartwatch sales soared in 2018, with Apple leading the charge
Apple Watch Series 4 Review

Bought a new smartwatch in the last year? You're not alone. According to the NPD Group, a U.S.-based market research organization, smartwatch sales in the U.S. rose hugely in the year from November 2017 to November 2018, with Apple playing a prominent role in that growth.

In year-on-year performance, the overall value of smartwatch sales in dollars rose by 51 percent, adding up to nearly $5 billion. Unit sales (the pure number of smartwatches sold) rose by 61 percent year-on-year. As you might expect, Apple played a huge role in that growth, and it's likely the release of the stellar Apple Watch Series 4 and subsequent price drops on older Apple Watches spurred a certain amount of that growth.

Read more
The Apollo Traveller is the fastest recharging power bank we’ve ever used
Elecjet Apollo Traveller Power Bank



Read more