With layoffs at Leeo and Wink for sale, is the smart home crumbling?

by Stacey Higginbotham for Fortune:  Early adopters, venture capitalists and entrepreneurs have bought into the idea of a smart home, but mainstream consumers haven’t.

Leeo, a company that makes a connected nightlight that doubles as a smoke detector for the mobile era and has raised $37 million in funding, laid off about 30% of its staff Wednesday. Earlier this month, we reported that product manufacturing shop Quirky was unwilling to support its home hub software company Wink and it has put it up for sale, according to sources. Meanwhile, a home automation management device built by startup Ninja Blocks failed to raise funding and shut down.

Smart home startups like Goji and Plum are so late to market with their products that supporters who gave them money through their crowd-funding campaigns have given up on them. Goji’s smart lock was supposed to ship 18 months ago. Now the company is only shipping a small number of locks and plans to fulfill all other orders by August. Plum, a connected Wi-Fi light switch maker founded by the former head of CEDIA, the trade association for professional home automation installers, announced its product in early 2013 and plans to ship later this year. They were supposed to be ready in August 2013.

With $454 million invested in connected home companies last year, there is plenty of money riding on the smart home. According to CB Insights data, smart home startups took in a little over $1 billion in funding between 2012 and 2014.  Cont'd...

Comments (0)

This post does not have any comments. Be the first to leave a comment below.

Post A Comment

You must be logged in before you can post a comment. Login now.

Featured Product

ELK Products -M1 GOLD with Two-Way Wireless

ELK Products -M1 GOLD with Two-Way Wireless

The M1 Gold Security & Automation Control combines security, fire, energy management, lighting, and access control to provide total control of the home. Easily integrating with products of industry partner manufacturers, M1 controls offer a truly customized solution. With remote access capabilities and simple, user-friendly interfaces, M1 keeps homeowners informed and in control, anytime, anywhere! ELK's Two-Way Wireless family of products for the M1 offers a truly secure and reliable wireless solution with cutting edge techniques such as frequency hopping and UL approved jamming detection to defend against interference, hacking, and jamming. Advanced features ensure reliability, extend battery life, and provide innovative security enhancements including wirelessly interconnected smoke detectors, motion detectors with built-in security/convenience lights, and key fobs with a system status inquiry button, allowing users to see if an alarm has been activated before entering the home.