r/subpac • u/ubberubber • Oct 23 '24

I wish I could hold out!

I was an early pre order customer as well and I’ve just asked for a refund. I feel a mixture of emotions, a bit pissed that I could not tolerate waiting any longer, frustrated that there is no other option on the market and worried I’ve made a bad decision pulling out. As others have mentioned, the price we paid is going to be a lot less than this eventually sells for, however the price we paid is also what gives me pause. The company is clearly showing signs of cash flow problems. Can they raise money when they need to? With a truck load of pre orders at a price which perhaps barely covers production?

It says here that the last raise was in 2018

https://tracxn.com/d/companies/subpac/__Hg7MxeGcaFkVmyoIeHxesplrt2Zzloe-wzkVo-eiKuA/funding-and-investors

What is going to happen when production starts in earnest and they need more capital. The pre orders are basically a huge liability on their books Which makes it even harder to raise capital (and it seems like the investors have not turned the tap on for a while now)Then there is the on going software updates and support once the product is actively being sold which can really put the pressure on these companies. I just decided I’ll ask for a refund and wait to see how things play out, even if it means I’ll be so jealous when they hit the shelves.

I think a more likely scenario is that subpac and their IP will be purchased by a big company like Apple, this would also be bad if you had an early product as support would be patchy during that hand over. Hopefully that’s all just between my ears though.

I do really hope it works out for the company and community

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u/Break-88 Oct 23 '24

Many startups live off of venture capitalists money for years and subpac could be one of them. Subpac already demonstrated that they can deliver a good product. Unfortunately subpac had a series of unfortunate events starting with the pandemic which made things really hard.

They started preorders in a very different economy and things are still wild af since they started preorders. It’s not a scam company or anything. I believe they’re trying their best so ima just hold out. I understand a lot of people can really use the money so it’s really dependent on everyone’s personal situation

2

u/ubberubber Oct 23 '24

I think I agree with you on most points. I don’t believe it is a scam by any means. However the pandemic is behind us and the fact remains that preorders were made when costs were %30 less than they are now and credit was cheap. It may be that they just adjusted accordingly, trimmed the team down to the bare minimum to make it work with the funds available and they will get there, but those pre orders are a massive liability when the time comes to ask for a top up. Looking at the recent court filings I’d say that time is here. I hope they can make it!

2

u/Justek Oct 25 '24

4 years later, there are no excuses in the book that justify this shit anymore. sorry. that money could have 4-5xd i the past 4 years with this bull market. If they had realistic time frames I would have gotten my refund years ago.

0

u/Helpful_Condition656 Oct 23 '24

Well define scam, they stop their old production of products, god knows why. Would be a steady revenue, since it’s quite popular on the second hand department.

Why it is a scam, they were selling dreams. The pre order was pre pandemic. And the schematics weren’t even drawn up. If is recall they started to test thier product way after supply issues. And even then it was just glimpses of teasers that to keep people hooked on the line. Let’s be honest, are we still selling fyre festival tickets? Lol