A Closer Look at Wavemaker Labs and the Case of Dice Cream
In the ever-evolving world of crowdfunding, the line between innovation and exploitation can sometimes blur. A recent example that highlights this issue is Dice Cream, an intriguing startup aiming to revolutionize the ice cream store experience with robotic arms serving dice-shaped ice cream. Despite its whimsical concept and a seemingly huge market potential, Dice Cream has struggled to meet its funding goals. The underlying issues might lie in its associations and the track record of key players involved.
The Role of Wavemaker Labs
At the heart of this story is Wavemaker Labs, a venture studio known for its focus on advanced robotics for agriculture and food preparation. Wavemaker Labs has incubated several high-profile startups, providing them with initial capital and support. Among these ventures are Piestro, Graze, and Miso Robotics, which have collectively raised significant amounts through crowdfunding:
- Piestro: $11.7 million
- Graze: $15.5 million
- Miso Robotics: $97 million
Despite these impressive fundraising figures, many of Wavemaker’s ventures have faced substantial challenges:
- Piestro: Closed in January, resulting in a 100% loss for over 2,000 investors.
- Miso Robotics: Reported $11 million in losses in 2023.
- Graze: Experienced $7.5 million in losses in 2023.
- Future Acres: Another Wavemaker-backed business, has also shut down.
In an attempt to possibly distance themselves from this troubled history, Wavemaker has rebranded as Vebu Labs.
The Dice Cream Team
While Dice Cream isn’t officially backed by Vebu Labs, its leadership team includes several former Wavemaker/Vebu members, raising concerns about their collective track record:
- Jack Yang, CEO: Splits his time between Dice Cream and a full-time consulting job, with no equity in Dice Cream.
- Nicholas Degnan, CTO: Previously worked at Miso and Graze, and served as COO at Wavemaker/Vebu.
- Kevin Morris, CFO: Formerly with Miso and Wavemaker/Vebu, earning $10k per month for fundraising while dedicating only 5 hours a week to Dice Cream.
Funding Challenges
With just a few days left in their campaign, Dice Cream has raised around $130,000, far short of their ambitious $4 million goal. A significant portion of this amount is allocated to Kevin Morris and StartEngine, leaving limited funds for the business itself. The struggles of previous ventures backed by Wavemaker/Vebu have undoubtedly made investors wary, contributing to the current funding challenges faced by Dice Cream.
Building Trust
The history of significant losses and unfulfilled promises from previous ventures has eroded trust among investors. The skepticism is further fueled by the leadership’s apparent lack of full-time commitment to Dice Cream and the perceived focus on personal gains over business success.
For the crowdfunding industry to thrive, it is crucial to foster a culture of transparency, accountability, and genuine innovation. Investors must be vigilant and conduct thorough due diligence before committing their funds, while platforms and venture studios must prioritize sustainable and ethical business practices.
Final Thoughts
The case of Dice Cream and its association with Wavemaker Labs (now Vebu Labs) serves as a cautionary tale in the crowdfunding ecosystem. While the potential for innovative projects to gain support remains high, the need for stringent oversight and investor education is more critical than ever. As the industry matures, distinguishing genuine innovators from opportunistic grifters will be essential for maintaining investor confidence and driving long-term success.
