What can happen when you stepped down? It is a scenario in which no start-up creator wants to find himself.
Ben FishStix Goldhaber and Chris ChanManV Chan started Juked in 2019 with the aim of building an inclusive community platform for esports fans. Juked was originally launched as a web-based platform. There were many players who embraced that app earlier in 2022 when it launched on iOS and Android. The app was used by nearly 166,000 sports fans in July.
Juked knew that it would need additional money to fund future development and began to pitch on a multi-million dollar seed round.
That world destroyed and destabilized. Stock and crypto markets have fallen. The war in Ukraine ended. The Fed raised interest rates. The investor changed the way they viewed early-stage prospects as a change.
We measured only good and not bad in a fundraising environment where only the best companies got paid. As the end result is, unfortunately, we weren’t able to convince VCs to support Juked, Goldhaber explained.
In an investment environment that is teasing, more-valued transactions happen, and more start-up creators will find themselves in the same position as Goldhaber and Chan.
Even though the team could’ve remained silent about their issues, Jukeds community strategy focused on transparency. On September 24, Goldhaber posted its community and investors a now viral blog describing Jukeds situation. The app will need to shut down if it wasn’t possible for the company to get a buyer before October 7.
Hey everybody here today, that note I didn’t think I should write. Juked is a serious problem in the economy. We’re going to be very low on funding. If we can’t find a acquirer, we’ll start to suspend operations on October 7.
Ben Goldhaber (@FishStix) September 23, 2022.
The blog post also invited interest buyers to make a pitch. To Goldhaber, Juked appeals clearly to a buyer who wants to become a part of the esports audience and share those relations with him. Most esports companies utilize social media platforms like Twitter, Twitch, YouTube, Reddit, Discord and more to reach fans with a disadvantage.
The real strength of a third party middleman is understanding and reaching their users. You don’t have data, and you must approve all the powerful algorithms to clear your message. Juked fixes that, said Goldhaber.
Juked is also looking for legacy media companies who are struggling to connect with Gen Z.
Does Jukeds pitch work now? Since their announcement, the team confirmed that it was overwhelmed by the number of inbound leads. I need to be super-conscious. Goldhaber joked.
It was not until recently that Juked chose their vibrant community and product to stimulate the support of fans and industry professionals. They likely won.
Other entrepreneurs should take note of the fact that they are a little hesitant. While not all products are community-oriented as Juked, this case shows no sugar-coating the truth is the best choice. The audience Juked, cultivated by their transparency, saved the company.
Jukeds plan is to continue collecting a lot of offers from now until October 7 to find the best possible prospect for their community.
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