Failure Rewarded: Hot Startup, Zero Delivery - $10 Million Funding

Canary, a startup home security video device that raised over $2M in a wildly successful crowdfunding campaign, announced <a href="http://news.cnet.com/8301-11386_3-57619936-76/canary-raises-%2410-million-for-app-enabled-home-security/" target="_blank">it raised $10 million more</a> this week. We covered the hype and detailed the device in our "<a href="/updates/2141" target="_blank">Can This Hot Startup Disrupt Home Security</a>" note. <img src="https://ipvm-uploads.s3.amazonaws.com/uploads/fe38/749f/722cd8ec5fa8f8edfbad362ba3c5bd95.jpg" border="0" alt="" width="284" height="232"> While that news is notable on it's own, the real kicker here: Canary has shipped zero units, and has missed it's own shipping deadlines: Feb 2014 became May 2014, and now the company's <a href="http://www.indiegogo.com/projects/canary-the-first-smart-home-security-device-for-everyone?c=comments" target="_blank">indegogo page</a> is showing June 2014 for most units in the first production batch. I'm just surprised that despite being in pre-production phase, the company continues to win so much backing. At least the <a href="http://offthebase.files.wordpress.com/2011/02/thinmints_pkg1.jpg" target="_blank">Girl Scouts hand me a box of Thin Mints</a> when I pass over the cash. Canary just issues another '<a href="http://en.wikipedia.org/wiki/IOU" target="_blank">IOU</a>'. Amazing!