Lunarr Is Going Dark . . .

Posted on May 4, 2009
Filed Under Companies, Entrepreneurship |

Like Tom, I am also a big fan of the team at Lunarr and over the last year and a half have become good friends with Hideshi Hamaguchi, who is one of the most interesting and generous of heart people you will have the good fortune of meeting.

I’m a big fan of the team behind Lunarr, a startup based in Portland, OR, and led by two of Japan’s top entrepreneurs: Toru Takasuka and Hideshi Hamaguchi. I was sad to hear that Lunarr is shutting down its service by May 10.

[From Lunarr Is Going Dark . . .]

When Hideshi told me they were shutting Lunarr down I was saddened but not surprised. Their tale is emblematic of the challenges that startups have getting a consumer/SMB products launched and to critical mass when the demands for features and integration to third party services exceed the ability of startup resources to deliver them, and it is also worth remembering that software development is still a time and resource intensive process even with the range of tools that are available.

The cost of acquiring customers is not insignificant either, especially when the macro environment favors the stability of large brands leading to a big getting bigger dynamic. The demand for features coupled with an increasingly fickle consumer market means that getting it right from the start is more critical than ever and even when you do generate some buzz and interest, converting tryers into users remains a significant challenge.

With an ability to self fund the operation of this company well into the future, it is apparent that Toru and Hideshi looked at Lunarr’s prospects objectively, not as founders but as investors, and could not see a disruptive event propelling forward. I admire this discipline because it’s rare in Silicon Valley where we demonstrate an institutional bias that favors hope over experience.

While I am saddened by the demise of Lunarr, I take with me great satisfaction in the knowledge that my relationship with Toru and Hideshi transcends any single company.

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