consumer electronics startups Jawbone look is crazy development: absorb more than 2 $ venture capital funds, release hot products like the speaker wireless speakers and Up smart hand ring, focused on high-tech industries such as wearable and hot Internet devices.
but in earlier this year, the Jawbone run into a problem: more users demand beyond its capacity.
the traditional solution is to venture capitalists in silicon valley to dig more cash, but the Jawbone think equity fund-raising could take a long time. There are millions of orders waiting for shipment, and a busy holiday sales season is approaching. So it chose another way: borrowing.
“fortune” magazine of: the silicon valley company has quietly debt financing . The first issue of than by silver lake (through its Waterman platform), and Fortress investment group ( FIG ) by jpmorgan chase ( & ) custom-made special security channel. The rest of the than by jpmorgan chase ( & ) and Wells Fargo ( WFC ) through assets such as inventory mortgage loans. Jawbone before and Wells Fargo have credit financing, this means that the quota increase.
“we are experiencing crazy retail demand, especially since the Up again since its launch, “Jawbone and founder of CEO Hosain Rahman explained. “Growth is greater than ever before, equity financing is not the most effective way of to deal with. If you are a strong demand for software companies, such as Amazon , you just need to add more servers to the AWS cloud architecture. Production hardware products, but when you will have more things to consider – material ordering, production, delivery, etc., borrowing is the most effective way of financing.”
however, this is not to say that Jawbone no longer consider equity financing. Rahman refused to talk about this matter, but is Jawbone has the New equity financing, $ , to participate in the venture capital has Andreessen Horowitz , kleiner perkins caufield & byers, Khosla Ventures and sequoia capital. These funds have settled, but its essence is a kind of binding in proportion in Jawbone in the future, after all equity investment depends on ipo or m&a to exit.