pushkar
Well-Known Member
The inventory was paid for by founder money. Without founder money there would be no inventory. It didn't matter that money was tied up in inventory. You crowd sourced a bike at close to zero profit margin, so when things went bad you end up eating the loss ( assuming you pay everyone back) which eats into your free capital. If you hadn't crowd sourced, you still eat those losses. Inventory had nothing to do with it. You are perhaps fortunate that you could return the inventory in this COVID environment. What constrained you from moving forward was a commitment, which you ultimately needed to break away from.
Knowing what everyone knows now, if it were not for COVID, we would absolutely have been able to deliver the bikes. I would argue that commitment has nothing to do with it, but nothing we say is going to change opinions.
We are learning what not to do, the hard way. We will try to stay away from crowdfunding, esp in a challenging environment. So per our new policy, we are not pre-selling a product we dont have or cant make. We are giving ourselves time to build enough inventory and capacity to be able to deliver this. We will take our time to refine, improve, adjust and tweak it till we know that is a product that can be built.