Moldable glue Sugru once aimed to transform DIY repairs. It got famous quickly among makers and DIY enthusiasts around the world after launch. Sugru is a moldable glue that was supposed to revolutionize DIY repair. The company launched in 2009 received most of the attention from the makers and enthusiasts of DIY.
The Birth of Sugru
Irish inventor Jane Ní Dhulchaointigh co-founded FormFormForm Ltd (FFF) in London in 2004. Made available to the consumer in 2009, Sugru allowed people to be able to repair all kinds of things and customize items. Unlike play-dough, Sugru can be filled in any shape and setting to cure into a strong flexible silicone rubber. TIME magazine recognized its potential, naming it one of the best inventions 2010.
Crowdfunding Success and Expansion Efforts
To fuel its growth, FFF turned to crowdfunding. In 2015, business was valued at £27 million as the company raised over £3 million on Crowdcube. Later, Another round of funding was done in 2017 for £1.86 million at £33 million. This money was to spend for Sugru being found in stores all around the world.
Challenges in Scaling
Sugru’s business did face challenges, despite the excitement. While selling online did well, getting in was not easy. The expense of creating consumer awareness and footfalls at physical was higher than planned. According to Jane Ní Dhulchaointigh, getting consumers to enter their store costs more than expected.
Financial Struggles and Acquisition
In November 2017, Clydesdale and Yorkshire Bank withdrew a £2 million debt facility from the company causing financial strain. The company ended up selling to Tesa, a German adhesives firm, for £7.6 million in 2018. As a result, many investors suffered a loss of 90%.
Lessons from Sugru’s Journey
The story behind Sugru reveals just how difficult it can be for a startup to move from a niche product to the shelves of main street. It also reveals the dangers of investing in crowdfunding campaigns, especially seeing as high valuations do not always lead to successful exits. As Robin Klein noted, “The press headlines really focus on the fact that the investors have lost 90% of their investment.”
The Minty project highlights that a high value doesn’t always result in a successful exit when a business does pond. “The press headlines say investors lost 90% of their investment,” Robin Klein says.
