# BERG (2005 – 2014)

- URL: https://girisimcikafasi.com/en/startup-graveyard/berg/
- Sector: Hardware
- Country: United Kingdom
- Total funding: $1.3 million
- Cause of closure: No market need

## What did it do?

BERG began in London as a design studio providing strategy and product design consultancy to technology companies, and was behind projects such as the iPad magazine platform Mag+. In 2013 it became a product company, putting the spotlight on Little Printer, an internet-connected mini thermal printer, and the BERG Cloud platform, which aimed to make developing connected devices easier.

## Why did it shut down?

In 2013 the studio turned from consultancy into a product-focused start-up, and in October 2013 it raised $1.3 million from Index Ventures, Initial Capital and Connect Ventures. The investment was meant to turn BERG Cloud into a platform that made hardware development as easy as web development. About a year later, however, its products had not reached the scale needed to create a sustainable business. On 9 September 2014 Matt Webb announced that the studio would close, explaining that they had not managed to build a sustainable business in connected products. A small team kept Little Printer running until 31 March 2015; the company proposed open-sourcing the code and handing the hardware business to a buyer who would keep supporting it.

## The story

BERG's roots go back to a design studio founded in London in 2005. Run by Matt Webb and Jack Schulze, the studio was known for experimental work where technology meets everyday objects, and it provided strategy and product consultancy to technology companies. Mag+, a magazine platform developed for the iPad, was one of the standout projects of this period.

The studio's best-loved product was Little Printer. First shown in 2011 and opened for pre-orders in August 2012, the small device printed news and messages selected from the internet on thermal paper, like a personalised mini newspaper. The product attracted wide attention in the technology and design press.

In 2013 BERG turned from consultancy into a product company. In October 2013 it raised $1.3 million from Index Ventures, Initial Capital and Connect Ventures. The goal was to make developing connected devices as easy as developing a web app through a platform called BERG Cloud; to that end, the company also produced developer add-ons that worked with boards such as the Raspberry Pi.

About a year later, on 9 September 2014, Matt Webb announced that the studio would close. According to Webb, they had not managed to build a sustainable business in connected products. As the company went into hibernation, a small team kept Little Printer going until 31 March 2015. BERG proposed open-sourcing the code and selling the hardware business to a company that would commit to continuing support.

BERG's story shows how hard it can be for a talented team that entered the internet of things before the concept went mainstream to turn a much-loved design into a lasting revenue model.

## Lessons

- When moving from consultancy to a product company, accept that the revenue model changes fundamentally; prove that the product will sell before the cash flow from client projects dries up.
- A device loved by the press and design circles does not mean repeat demand; measure how often users come back to the product after the sale.
- Trying to sell a platform to others alongside your own device splits your attention; first capture sustainable demand with a single product.

## Sources

- [Early Internet of things startup Berg, maker of the 'Little Printer,' is shutting down](https://venturebeat.com/business/early-internet-of-things-startup-berg-maker-of-the-little-printer-is-shutting-down/)
- [Little Printer will stop working next March as its creator shuts down](https://www.engadget.com/2014-09-10-little-printer-shutdown.html)
- [BERG closes seed round to build on Little Printer and Twitter Clock](https://growthbusiness.co.uk/berg-closes-seed-round-to-build-on-little-printer-and-twitter-clock-10447/)
- [Studio](https://berglondon.com/studio/)