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by palakchokshi 3219 days ago
This investment seemed to me to be in search of the next Dollar Shave Club.
1 comments

The idea of getting people to subscribe to your product looks really good to your investors these days -- once you get people to start the subscription, they are likely to keep giving you money, even when they don't really want the product anymore because there is some effort in canceling it.

I am NOT saying anything bad about the DSC, I love the commercials, but you have to wonder about a company who's business model is intertwined with subscribing to a product.

Subscription model businesses are actually pretty good businesses if you can service a genuine recurring need with a genuinely good product at a reasonable price point.

I order diapers for my kid on a subscription. As a consumer it works great for me since I didn't have any upfront one time cost like $700.

The problem I see with Juicero and its investors is that the machine is not unique, it is redundant, the investors were clearly blinded by the founder's pedigree to overlook the simple clear fact that the machine was not needed and the founder was delusional to think the machine was needed.