# Doppler Labs (2013 – 2017)

- URL: https://girisimcikafasi.com/en/startup-graveyard/doppler-labs/
- Sector: Hardware
- Country: United States
- Total funding: $50 million
- Cause of closure: Ran out of cash

## What did it do?

Doppler Labs was a San Francisco-based audio technology company developing in-ear computing technology. After its first product, the Dubs earplugs, it released Here One in 2017: wireless smart earbuds that could selectively filter ambient sound, play music and amplify conversations. The company was founded in New York in November 2013.

## Why did it shut down?

According to Business Insider, Here One sold only 25,000 units; the company had expected to sell more than 100,000. CEO Brian Hall explained that a design flaw left battery life shorter than expected and stopped the charging case working properly, which hurt early user reviews. With sales below target, investors would not put in fresh money and no reasonable buyer could be found. Products from tech giants, such as Apple's AirPods and Google's Pixel Buds, had also entered the same market. The company announced on 1 November 2017 that it would shut down.

## The story

At the Coachella music festival in 2016, some of the audience listened to the concerts with small devices in their ears. Doppler Labs' Here Active Listening system promised to let listeners tune the sound around them to their own taste. The company's goal was to put a computer inside the ear.

Doppler Labs was founded in New York in November 2013 by Noah Kraft, former Microsoft executive and angel investor Fritz Lanman, and Dan Wiggins; the company later moved to San Francisco. Kraft had previously worked alongside Lyor Cohen during the founding of 300 Entertainment. The first product, Dubs, reimagined the humble earplug. In July 2015 a $17 million Series B arrived, led by The Chernin Group, Wildcat Capital Management and Acequia Capital; names such as Henry Kravis and David Geffen were also among the investors. In July 2016 a further $24 million was raised in a round led by The Chernin Group, bringing total investment to $50 million.

The timing looked promising. Apple had removed the headphone jack and launched AirPods, and the smart earbud category Doppler had helped pioneer was expected to become a $40 billion industry by 2020. Here One, released in 2017, could selectively filter ambient sound, play music and amplify conversations. But according to Business Insider, the device sold only 25,000 units; the company had expected more than 100,000. CEO Brian Hall explained that a design flaw had shortened battery life and caused problems with the charging case. Around the same time Google launched Pixel Buds with real-time translation; Kraft pointed out that Doppler had made considerable progress on a similar feature.

With sales below target, investors would not put in fresh money and no buyer could be found. On 1 November 2017 the company announced it would cease operations, and it closed on 1 December. The remaining cash was set aside for what was owed to employees; as a parting gift, it released an app that let Here One be used as a hearing assistance device. Kraft told Business Insider: "At this point I would not advise anyone to go into the hardware business."

Doppler Labs shows that spotting the right category early is not enough for a hardware start-up that ends up on the same shelf as the tech giants.

## Lessons

- If a basic feature such as battery life falls short of target in your first hardware product, delaying the launch is cheaper than the cost of bad word of mouth.
- In a category the giants have also entered, perfect the feature that sets you apart (for Doppler, hearing assistance) in your first product.
- If closure is unavoidable, setting aside the remaining cash for obligations to employees and customers protects your reputation.

## Sources

- [Doppler Labs](https://en.wikipedia.org/wiki/Doppler_Labs)
- [A startup that raised $50 million to make a smarter version of Apple's AirPods has failed and shut down](http://www.businessinsider.com/why-doppler-labs-shut-down-2017-11?op=1)
- [Once A Unicorn-To-Be, Smart-Earbud Startup Doppler Labs To Shut Down](https://www.forbes.com/sites/amyfeldman/2017/11/01/once-a-unicorn-to-be-smart-earbud-startup-doppler-labs-to-shut-down/#2d12effd159a)
- [https://www.wikidata.org/wiki/Q39058626](https://www.wikidata.org/wiki/Q39058626)