Key Moments

Eric Migicovsky at Startup School SV 2014

Y CombinatorY Combinator
Science & Technology4 min read25 min video
Oct 14, 2014|13,730 views|107|4
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TL;DR

Eric Migicovsky shares the journey of Pebble, from a student idea to a Kickstarter sensation.

Key Insights

1

Pebble's origin lies in solving a personal problem: viewing phone notifications while biking.

2

Early prototyping involved combining readily available components like old Nokia phones and Arduinos.

3

Strategic, unconventional press outreach significantly boosted early product visibility.

4

The transition from a single-platform device (BlackBerry) to a multi-platform approach was crucial.

5

Launching an SDK early, despite a small user base, fostered a strong developer community.

6

Kickstarter was a pivotal funding strategy when traditional VC funding failed, validating immense market demand.

FROM PERSONAL PROBLEM TO PROTOTYPE

Eric Migicovsky's journey began in 2008 as an engineering student with a desire to interact with his smartphone while biking. Frustrated by the need to pull his phone out, he envisioned a bicycle computer that could display notifications. This evolved into a smartwatch concept after a friend suggested its broader utility beyond cycling. His initial prototype was a makeshift device combining parts from a Nokia 3310 and an Arduino.

EARLY DEVELOPMENT AND FUNDING

Returning to university, Migicovsky refined the concept, initially named 'Impulse,' focusing on displaying texts, emails, and calls on the wrist. Early funding came from winning pitch competitions, yielding comically large checks, and a loan from his parents. The first functional prototypes were built with friends, demonstrating the core utility of a connected watch, initially designed to work specifically with BlackBerry devices.

ITERATIVE DESIGN AND PRODUCT EVOLUTION

Recognizing the need for a more polished product, Migicovsky collaborated with an industrial designer. Sketches and 3D-printed prototypes in 2009-2010 began to transform the circuit board concept into something resembling an actual watch. This phase was crucial for allowing potential users to visualize wearing the device, moving beyond the initial hacker-built aesthetic.

STRATEGIC PUBLICITY AND MARKET VALIDATION

In late 2009, the team strategically leaked renders of their product to tech blogs like CrackBerry. This generated significant buzz, creating the false impression that BlackBerry itself was developing a watch. This created a "broken telephone" effect, leading to widespread media attention and a surge of public interest, which the team then capitalized on by officially announcing their product, gaining thousands of mailing list sign-ups.

FROM GARAGE ASSEMBLY TO Y COMBINATOR

Assembling the first 500 units in a dusty garage and later in a university lab, the team gained firsthand appreciation for hardware manufacturing. They shipped rudimentary, "alpha grade" units, learning valuable lessons from early customer feedback. This hands-on experience and strong customer engagement, with 80% daily active users, led them to apply to Y Combinator, a program historically hesitant to accept hardware startups.

THE SDK LAUNCH AND THE QUEST FOR COMPATIBILITY

During their YC stint, the team launched a Software Development Kit (SDK) in 2011, inviting developers to create apps for the Impulse watch. Despite a small user base, the SDK saw remarkable adoption, leading to over a hundred apps. A major limitation of Impulse was its lack of iPhone compatibility, a critical market demanded by investors. The release of iOS 5 with background Bluetooth capabilities provided the technical opening for a new product.

PEBBLE'S BIRTH AND THE KICKSTARTER GAMBLE

Based on Impulse's learnings and the new iOS capabilities, Pebble was designed. After failing to secure traditional venture capital funding, Paul Graham famously suggested Kickstarter. The team built their Kickstarter page, and the launch was an unprecedented success, raising $10 million from 70,000 backers in 30 days, far exceeding their initial $100,000 goal.

THE THREE PILLARS OF KICKSTARTER SUCCESS

Migicovsky attributes Pebble's Kickstarter success to three core product strengths as advised by YC partner Paul Buite: 1) Notifications and calls on the wrist, 2) Sports and fitness tracking integration with popular third-party apps, and 3) Customizable watch faces. These clear, compelling features resonated strongly with a diverse audience, driving massive crowdfunding.

MANUFACTURING CHALLENGES AND GLOBAL SHIPPING

The success of the Kickstarter campaign led to the daunting task of producing 85,000 watches. The team, inexperienced in consumer electronics manufacturing, relocated to Shenzhen, China, spending months near factories to oversee prototype development and production line setup. This period was characterized by intense problem-solving, including crucial waterproofing and assembly challenges, driven by a belief in the product's demand.

THE REVOLUTION OF ACCESSIBLE WEARABLES

Pebble aimed to offer an affordable alternative to expensive smartwatches. Unlike competitors focusing on premium aesthetics or all-in-one smartphone integration, Pebble prioritized affordability, long battery life, cross-platform compatibility (excluding Windows Phone), and hackability. The focus shifted to creating a device that seamlessly integrated into users' lives and offered long-term value.

EMPOWERING THE DEVELOPER AND USER COMMUNITY

A key differentiator for Pebble was its commitment to fostering a vibrant community of developers and users. The platform was designed to be open and hackable, encouraging individuals worldwide to create custom watch faces and applications. This community-driven innovation, exemplified by over 250,000 unique watch faces, became a core strength, surpassing even the company's initial vision.

THE ENDURING VALUE OF HABIT AND ROUTINE

Migicovsky emphasizes that Pebble's value isn't revolutionary from the instant of use, but rather accrues over time as it becomes integrated into daily habits and routines. This gradual enhancement of life, supported by a dedicated community and ongoing platform development, represents the long-term vision and impact of the Pebble ecosystem, stemming from a simple idea to solve a personal inconvenience.

Pebble Kickstarter Campaign Performance

Data extracted from this episode

GoalTime to GoalFirst MillionTotal RaisedNumber of BackersDuration
$100,0002 hours28 hours$10 million70,00030 days

Common Questions

The idea originated from a personal problem: wanting to see phone notifications while cycling in Holland without risking dropping the phone. This led to a concept for a bicycle computer that evolved into a watch.

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