All stories
Cautionary TaleConsumer Hardware / Food

How Juicero Raised $120M to Build a $400 Machine That Squeezed Juice Bags

Juicero raised $120M from top VCs (Kleiner Perkins, Google Ventures) to build a $400 WiFi-connected juicer. Then Bloomberg discovered you could squeeze the juice bags by hand and get the same result. The company shut down 16 months after launch.

Company: Juicero|Founded by: Doug Evans

The Challenge

Doug Evans envisioned Juicero as "the Keurig for juice": proprietary pre-packaged fruit/vegetable packs that a connected machine would press into fresh juice. The machine was beautifully engineered, with custom-milled aluminum and 4 tons of pressing force.

The problem: nobody asked whether 4 tons of pressing force was necessary to squeeze a bag of pre-chopped fruit.

The Approach — Tools in Action

What went wrong — No First Principles on the core value: First Principles would have asked: "What does making juice fundamentally require?"
  • Extracting liquid from fruits and vegetables
  • "Do pre-cut, pre-packaged fruits in a bag require 4 tons of force?" → No. You can squeeze them by hand.

The entire $400 machine was unnecessary. This is the textbook case of solution-first thinking — building an impressive technology without verifying the problem requires it.

What they needed — Abstraction Laddering:
  • Going up: "Why do people want a juicer?" → "For fresh, healthy juice" → "For convenient nutrition"
  • Going down: "How do we provide convenient nutrition?" → Options: juice bars, pre-bottled juice, fruit delivery, a simple manual press, OR a $400 WiFi-connected machine

The $400 machine was the most complex, most expensive answer to a simple need. Every other option was cheaper and simpler.

Inversion: "What would guarantee this product fails?"
  • Make it expensive ($400 machine + $5-8/pack subscriptions)
  • Make it do something customers can do by hand
  • Make it WiFi-connected (the machine refused to work if the WiFi was down or if it detected an "expired" pack)
  • Don't validate that the machine is necessary before building it

Juicero did all four.

The Outcome

Juicero became Silicon Valley's most infamous failure:

  • Bloomberg's exposé showed reporters squeezing the bags by hand — getting the same juice without the machine
  • The video went viral, becoming a symbol of Silicon Valley excess
  • Shut down in September 2017, just 16 months after launch
  • $120M in funding from Kleiner Perkins, Google Ventures, and others — essentially wasted
  • "Juicero" became shorthand for overengineered, unnecessary products
The lesson for VCs: Kleiner Perkins invested $120M without apparently asking: "Can you squeeze the bags by hand?" A single First Principles question would have revealed the fundamental flaw.
💡

Key Takeaway

Before building an expensive solution, verify that the problem actually requires it. Use First Principles to ask: "What is the simplest possible way to deliver this value?" If the answer is "squeeze a bag by hand," don't build a $400 WiFi-connected machine.

Tools Used in This Story

Related Combos

Sources