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Amp’d Investors Get Shocked
Despite raising $360-million in venture capital over the past two years, Amp’d Mobile has filed for bankruptcy protection. Is anyone surprised? This is a company, after all, that decided to get into the ultra-competitive wireless market by focusing on a small, high-end niche – young people who want a multi-media phone that cost a lot of money. Sounds like a recipe for disaster! The problem is the market was/is too small and exacerbated by the fact watching videos on your phone – Amp’d’s sweet spot – is still far from being user-friendly. Yet some apparently savvy investors poured $360 MILLION into Amp’d. What were they thinking? How did they justify this high-risk investment – and pour more money into it even after it became apparent the concept wasn’t working?