Pebble Reportedly Struggling To Stay Afloat

For the entirety of Apple Watch’s run-up to launch, I’ve advocated the idea that Cupertino’s wearable was primed to operate in a realm where it had, in reality, no competition. But having repeatedly said that, I’ve also repeatedly said that the only other manner of smartwatch (well, featurewatch, anyway) to make truly popular inroads would be a low-cost solution like those pioneered by Pebble. I also claimed that Pebble (Steel, Time, etc.) represents the only true competition for Android Wear devices from a sales volume perspective.

That may have been naive, because apparently, even after breaking Kickstarter records and scoring millions of dollars in funding, Pebble is having significant problems. TechCrunch reports:

According to sources close to the company, the company is having trouble maintaining its growth and has turned to a Silicon Valley bank for a $5 million loan and $5 million line of credit. Valley VCs have been turning down the company’s requests for new capital.

Pebble CEO Eric Migicovsky offered no comment.

The company, which recently raised $20 million in a wildly successful Kickstarter, currently has 150 employees and is still hiring. Even with the crowdfunding infusion – which amounts to about $18 million after fees – the company is shopping for VC money in order to maintain growth and turned to a bank loan “in order to stay afloat.”

The source noted that many employees were unhappy with the direction of the company as it turns to face competitors from Apple, Android, and outside.

Still, if true, I admit surprise in all this. Pebble’s always positioned itself as some sort of singularly-focused brand, interested only in bringing the most stripped-down, barebones wearable experience to iOS, Android, and Windows Phone. They easily have the budget market well in hand, but it seems that — much to the chagrin of his employees — Migicovsky might not be satisfied with that humble (but presumably profitable) standing. Are Silicon Valley venture capitalists passing on Pebble because they don’t see a future in the low-dollar wearables game, or are they unimpressed with Pebble’s heightened ambitions to go toe-to-toe with multi-billion-dollar multinationals?

Pebble needs a hug. But even more than that, they need to KISS and wake up.