More money, more problems causes Jawbone collapse
Jawbone had more than enough money to take on Fitbit and other health-tracking devices in the "wearables" market
Jawbone, a consumer electronics company, has collapsed despite hundreds of millions of dollars investment from top-tier venture capital firms and a sovereign wealth fund.
In June this year, Jawbone began liquidating proceedings after its fitness-tracker failed to attract the wearables market.
The Kuwait Investment Authority led a $165m investment in Jawbone just last year, despite many original investors were unwilling to commit to additional funds.
In 2014, top-tier venture capital firms, including Sequoia, Andreessen Horowitz, Khosla Ventures and Kleiner Perkins Caufield & Buyers, also heavily invested allowing Jawbone's valuation to reach $3.2bn.
With enough money invested Jawbone was in the running lead to take on its wearable competitors, however the overfunding became a problem. According to technology experts and financiers, there is substantial cash being invested in Silicon Valley, however such investment can have a negative effect on companies that have no future,
According to research firm CB Insights, Jawbone is the second largest failure among venture-backed companies based on total funding. In first place sits solar technology company Solyndra which filed for bankruptcy in 2011.
Alex Asseily, Jawbone's co-founder who resigned as board chairman and director in January 2015, told Reuters "it's saddening to see Jawbone end this way."