QualityInspection.org

Quality Assurance, Product Development, and Purchasing Strategies in China

You are here: Home / New Product Development / Angell e-Bikes: A Startup Dream Turned Nightmare

Angell e-Bikes: A Startup Dream Turned Nightmare

by

We examine the dramatic downfall of Angell Bikes, a French e-bike startup that once promised to revolutionize urban mobility. Despite strong financial backing, high-profile partnerships, and a sleek product, the company now faces bankruptcy. What went wrong?

 

Listen to the audio here.

 

Here are a few notes on the topics discussed, but listen to the episode for all of the information!

Angell Bikes Background

  • Angell Bikes was founded by Marc Simoncini, a French entrepreneur known for his success in software startups.
  • The brand positioned itself as a premium e-bike company, promising innovative design and connectivity features.
  • Initial capital investment was €3 million, later raising up to €30 million. (09:09)

 

Their Business Model and Partnerships

  • Angel Bikes partnered with SEB, a French manufacturer known for household appliances—not mobility products.
  • The assembly was done in France, but many components came from China and Taiwan.
  • A third-party company, Kickmaker, was brought in to handle industrialisation and product development. (12:30)

 

Possible Manufacturing and Design Flaws

  • Question marks around whether Kickmaker had experience with bike manufacturing.
  • SEB’s expertise was in household electronics, not mobility, raising concerns about quality control.
  • A major issue arose with the bike’s frame and handlebars, which sometimes broke, leading to a massive recall. (16:10)

 

Costly Recall and Bankruptcy Crisis

  • Nearly all sold bikes (approx. 5,000) had to be recalled due to safety concerns.
  • Angel Bikes had to refund approximately €13 million but lacked the necessary funds.
  • The company announced its closure, leaving customers without refunds or working bikes. (23:52)

 

Blame Game and Legal Battles

  • Simoncini blamed both Kickmaker and SEB, threatening legal action.
  • SEB responded, claiming they followed specifications and were not at fault.
  • A lack of traceability in manufacturing made it difficult to pinpoint the exact cause of failures. (27:28)

 

Key Takeaways: Lessons for Entrepreneurs and Manufacturers

  • The importance of selecting manufacturing partners with experience in your product category.
  • The critical role of rigorous design validation, safety testing, and supply chain management.
  • The risks of prioritising aesthetics over functionality in industrial design. (33:44)

 

Related content…