Smartwatch Maker Olio Raises $10M: ‘No want For Cellphones On Wrists’
Bernadette Tansey July 31, 2015
at first glance, the story of veteran know-how product design professional Steve Jacobs can be advised as a version of “David and Goliath.” however in this case, it’s a bit extra like “David and Two Goliaths.”
together with his startup smartwatch company, San Francisco-primarily based Olio units, Jacobs is clearly challenging tech heavyweight Apple, whose long-predicted Apple Watch made its debut in March.
however Olio, launched only this 12 months, can be taking up another entrenched foe—the luxury watch industry that glitters with Swiss manufacturers like TAG Heuer and Frederique constant. each these excessive-finish watchmakers have plans similar to Olio’s: to make a smartwatch as purposeful and stylish as a classic Swiss timepiece.
Frederique steady already has smartwatches in the marketplace for $ 995 and $ 1,a hundred and fifty, falling inside Olio’s target worth range of $ 500 to $ 2000.
regardless of the cruel competition, Jacobs has found investors who like his odds. This week Olio mentioned it had closed a $ 10 million sequence A financing round led by way of NEA Ventures. earlier than the tip of the summer, the company plans to deliver its first batch of a thousand variation One watches, that have been pre-offered after being supplied in March. Olio is now advertising a second restricted batch that features two new styles, for delivery in the fall.
Jacobs appears to be reveling in his role as a plucky David, sizing up his larger opponents to seek out their susceptible spots as he attracts on a career history in new product development for companies together with Google, Amazon, HP—and Apple.
He says a nimble new company like Olio is best positioned to straddle the two worlds of shopper electronics and luxury type than the dominant corporations in both realm.
traditional watchmakers are too far from their core competency areas to department out into connected devices and compete for the talent required, Jacobs says. In his view, Apple was also out of its part when it designed the look of its mid-range watches with variously coloured straps, which start at $ 549.
“They’re offering five colors of rubber and calling it fashion,” Jacobs says.
additionally, by means of making the Apple Watch a small depository for mobile apps, Apple has misinterpret the needs of consumers looking for a high-quality watch more advantageous with expertise, Jacobs keeps.
“We don’t think that we want a mobile phone on our wrists,” Jacobs says.
whereas Jacobs may have a point in regards to the negative aspects for tech firms and watchmakers who each and every stay of their silos, Olio will
additionally face competition from partnerships between these two giant sectors. Tag Heuer announced in March that it has teamed up with Google and Intel to supply a smartwatch by way of the tip of this year. Tag Heuer sells luxurious timepieces for $thirteen,000 or extra, but in addition offers conventional watches at the mid-range value levels where Olio competes. Olio’s steel and black models start at $595. the brand new gold-clad styles price $1,195 to $1,395.
Olio digital watch faces, leather bands, and bracelets have the seem of conventional watches. The know-how parts had been designed to inform time, but also to avoid wasting time, with the aid of appearing as a type of buffer between wearers and the information overload emitted to the watch with the aid of their smartphones, Jacobs says.
The watch face displays current climate conditions, a gauge of the collection of digital messages looking forward to the person, and the hours around the dial when occasions are scheduled. via swiping the watch face with a finger, wearers can get right of entry to experience details and messages. they are able to additionally ship pre-set responses to e-mails such as “I’m in a gathering and that i’ll call you later.” This relieves users of the social force people now really feel to respond in an instant, Jacobs says.
via its sensors, its machine learning parts, and its Bluetooth connection to the content material of the wearer’s smartphone, the Olio watch can ultimately learn enough about its owner’s habits and present place to advise well timed movements that can be executed with a swipe, Jacobs says. as an instance, the watch may recognize that it’s the end of the work day, it’s raining, and the most cost effective trip home is available from Lyft, he says. This selective repertoire of data, prompts, and moves includes some app connections, however the watch doesn’t host a full vary of exterior apps.
Olio watches work with each Android and iOS units. “You shouldn’t have to decide on your style fashion according to the closing cellular phone you purchased,” Jacobs says.
in addition to adopting classic watch face looks, Olio is also copying the ongoing carrier commitment of luxurious watch corporations. consumers will be capable to send in their watches for replacements of failing batteries and even of core electronics units, Jacobs says.
the possible market for Olio watches is very numerous, Jacobs says. Pressed to establish his core market, he envisions a success urban Millennials—men and women—who are neatly versed in know-how and able to purchase a top quality smartwatch to rejoice their accomplishments and improve their picture.
“They’re evolving from the Zuckerberg hoodie to one thing somewhat extra subtle,” Jacobs says. Olio’s watches now promote at a mid-range prices, however as the company explores new materials, it’ll transfer into the product segment priced over $2,000, where watches develop into what Jacobs calls “kinetic sculptures.”
unlike Apple, Olio hasn’t arrange distribution for its smartwatches at perfect buy.
“We aren’t promoting thru best purchase, we don’t have any plans to,” Jacobs says. the company is promoting the watches in an instant now and can eventually are searching for distribution arrangements with chosen fashion outlets, he says. “We don’t see ourselves as a shopper electronics company.”
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