Popular smartwatch maker Pebble appears to be in some financial trouble, according to a few sources "close to the company," as reported by TechCrunch. The company is having trouble maintaining its growth, turning to a bank in its home base of Silicon Valley for not only a $5 million loan but a $5 million line of credit. According to those same sources, banks in the Valley have been turning down Pebble's financial support requests repeatedly.

The smartwatch company's rocky monetary troubles come a few weeks after a well-publicized Kickstarter campaign, which reached its $500,000 goal in under 20 minutes of going live. The project's final funding amount - which received numerous stretch goals along the way - saw 78,471 backers pledge $20,338,986 for the new slimmer design and color display smartwatch.

Pebble Time
The company actually received around $18 million from the Kickstarter campaign, after fees, and currently staffs about 150 people with more being hired in new positions. Despite all of this success, and an infusion of forward momentum thanks directly to Apple's Apple Watch-focused "Spring Forward" event, the logistics of running the company have forced CEO Eric Migicovsky and fellow company heads to seek venture capitalist funding "in order to stay afloat."

TechCrunch's source also noted that numerous employees were unhappy with the company's direction "as it turns to face competitors from Apple, Android, and outside." This is perhaps alluding to the company's nonchalant attitude towards poking fun at Apple on its own website and Migicovsky's somewhat apathetic responses to Apple's impending entrance into the smartwatch market.

With Pebble facing such troubles just a few weeks after the Apple Watch launch, two events that may yet still be unrelated, it'll be interesting to see how Apple's competitors in the smartwatch market maneuver themselves to stay successful in an ever-growing and crowded field. Still, some employees are happy with Pebble and see a good future for the still-fairly-young company. “We’re a young company. The outlook for Pebble is very positive,” said a current employee who preferred to remain anonymous when speaking with TechCrunch. “It’s been a remarkable journey thus far.”

Related Roundup: Apple Watch Series 6
Buyer's Guide: Apple Watch (Neutral)

Top Rated Comments

jclardy Avatar
77 months ago
150 people on staff? Doing what? I think their issue is poor management unfortunately, there is no way they needed to grow that fast
Score: 19 Votes (Like | Disagree)
jpgr15 Avatar
77 months ago
Nothing to rejoice in here, people. As consumers, healthy competition benefits us all.
Score: 16 Votes (Like | Disagree)
Quu Avatar
77 months ago
Looks like my prediction from February is coming true. https://forums.macrumors.com/showpost.php?p=20668804&postcount=56

Quote from above thread:

Pebble 1 year = bankrupt.
Admittedly not bankrupt yet and they still have 8 months to prove me wrong :p

Also this post of mine from the same thread:

I think the Apple Watch will eat Pebbles lunch and this time next year we'll see Pebble shutting down their operations or downscaling significantly to stay running.
And everyone told me how wrong I was. It's only May and they're already in trouble.
Score: 15 Votes (Like | Disagree)
MVallee Avatar
77 months ago
It was only a matter of time.
Score: 15 Votes (Like | Disagree)
oneMadRssn Avatar
77 months ago
Why does it seem people want and are happy to watch Goliath crush the little guy here?
Score: 13 Votes (Like | Disagree)
macsplusmacs Avatar
77 months ago
Why does it seem people want and are happy to watch Goliath crush the little guy here?

Because the "Little Guy" has serious attitude problem. Instead of being classy, the CEO mocked apple repeatedly, and if you have seen any video of him know this guy to be just plain creepy IMO.

Not ever David deserves to beat a Goliath. They need to prove their worth to their customers, and in this case they just got out classed in product and company.
Score: 11 Votes (Like | Disagree)

Top Stories

Top Stories 57 Feature

Top Stories: Apple Event Next Tuesday, Mini-LED iPad Pro, iPhone Rumors

Saturday April 17, 2021 6:00 am PDT by
It feels like we've been waiting forever for new Apple products, but the wait is almost over as Apple has announced a media event for next Tuesday, so make sure to tune into MacRumors for full coverage of everything Apple announces. While that was the big news this week, we also got some new details on Apple's iPhone plans for 2022 and 2023 courtesy of analyst Ming-Chi Kuo, and we also saw...
flat imac 3d 3 teal

Reliable Leaker Hints Redesigned Colorful iMac to Debut at 'Spring Loaded' Event

Saturday April 17, 2021 4:43 am PDT by
Reliable leaker known as l0vetodream has hinted that Apple may debut its rumored redesigned and colorful iMac at its "Spring Loaded" event on Tuesday, April 20. In a tweet, the leaker posted an image of Apple's logo used for marketing the upcoming event and an image of the retro rainbow Apple logo alongside the colorful lineup of G3 iMacs. Apple leaker Jon Prosser previously reported that...
third gen Apple pencil leaked video

Video of Alleged Third-Generation Apple Pencil Leaks Ahead of Apple Event

Friday April 16, 2021 6:13 am PDT by
A video purporting to be of the third-generation Apple Pencil has today been shared online, showing a glossy finish that mirrors previous leaks. New ✏️ ready to 🚢 #AppleEvent @TommyBo50387266 pic.twitter.com/s4RCDwDi5M— 漢尼斯·拉斯納 🇨🇳 (@ileakeer) April 16, 2021 The brief video from Twitter account @ileakeer, spotted by 9to5Mac, shows an Apple Pencil with a glossy finish much like the...
important battery message iphone 11

Some iPhone 11 Users Seeing Increased Battery Health Percentages After iOS 14.5 Recalibration Process

Friday April 16, 2021 6:32 am PDT by
In the sixth beta of iOS 14.5, Apple introduced a recalibration process for the battery health reporting system on the iPhone 11, iPhone 11 Pro, and iPhone 11 Pro Max to address inaccurate battery health estimates for some users. Apple said this process might take a few weeks to be completed, and now that two weeks have passed since the sixth beta of iOS 14.5 was released, some users are...
duan rui iphone 12 13 notch

New Images Show Smaller iPhone 13 Notch Compared to iPhone 12

Saturday April 17, 2021 11:38 pm PDT by
Leaker known as "DuanRui" has shared more images that could give us our best look yet at Apple's redesigned notch for the iPhone 13. The new pictures follow similar images shared by the leaker last week, but the latest shots include a comparison with the existing iPhone 12 notch. DuanRui posted three images on Twitter that apparently originate from Weibo, although source details remain...
iphone 13 pro max cads eap

iPhone 13 Series CAD Leaks Reveal Larger Camera Dimensions

Friday April 16, 2021 1:53 am PDT by
Information and alleged CADs of the upcoming iPhone 13 series, shared in a video from EverythingApplePro, indicates that Apple plans to make this year's iPhone camera module significantly bigger, likely to make way for larger sensors and sensor-shift stabilization. According to the CADs shared in the video, the iPhone 13 mini, Pro, and Pro Max camera module will all be a "perfect square."...
maxresdefault

Hands-On With Anker's MagSafe-Compatible Battery Pack

Thursday April 15, 2021 9:39 am PDT by
Anker, a company known for its range of accessories designed for Apple products, recently came out with one of the first MagSafe-compatible battery packs, so we thought we'd check it out to see how it compares to a standard battery pack. Subscribe to the MacRumors YouTube channel for more videos. Design wise, Anker's power bank looks like a typical battery pack, but it has magnets built in...
apple event spring loaded

Apple's 'Spring Loaded' Event Officially Announced for Tuesday, April 20

Tuesday April 13, 2021 9:04 am PDT by
Following an overnight leak by Siri, Apple today officially announced that it will be holding a special "Spring Loaded" event on Tuesday, April 20 at 10:00 a.m. Pacific Time at the Steve Jobs Theater on the Apple Park campus in Cupertino, California. As with all of Apple's 2020 events, the April 2021 event will be a digital-only gathering with no members of the media invited to attend in...
iphone 12 120hz thumbnail feature

LTPO Displays Supporting 120Hz Refresh Rates Again Rumored for iPhone 13 Pro Models

Friday April 16, 2021 10:01 am PDT by
The two higher-end "iPhone 13 Pro" models that are coming in 2021 are expected to use LTPO display technology to enable 120Hz refresh rates, according to display analyst Ross Young. Young reaffirmed the detail in a tweet that said he'd heard rumors about only one model featuring LTPO, which he says is inaccurate. Heard some rumors in the industry and media that there would only be one ...
apple music

Apple Music Tops Spotify With One Cent Paid Per Stream

Friday April 16, 2021 6:44 am PDT by
In a letter slated to be shared with artists today through the Apple Music for Artists dashboard, obtained by The Wall Street Journal, Apple has reportedly revealed that it pays music rights holders one cent per song streamed on Apple Music. The report claims that Apple Music's payment structure is thus roughly double what Spotify pays music rights holders per stream, which averages to about ...