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?
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)
