Traverse City News and Events

Local Project Battles Angry Backers, Bad PR

April 28, 2014

A local project that raised more than a half million dollars on Kickstarter is now in some hot water with some of its backers.

Hybra Advance Technology – which just last month relocated its offices from Traverse City to Warren, Mich. – was one of a handful of local crowdfunding projects The Ticker recently reported on; the project met its $175,000 goal just five days after launching its campaign in August.

It ultimately raised $547,125 from nearly 4,000 backers to bring its Sound Band device, a wireless headset without speakers, to market. But reported project delays (including delivery of backer rewards) – followed by a lack of communication and leadership upheaval – spawned a litany of concerns from backers to the point of accusing the company of being a fraud and the project a scam.

Communication problems have also extended to the company websites – both hybratech.com and soundband.com have been non-functional for weeks with the following message: “We have switched servers and are updating our webpage. Please allow us a couple weeks to finalize construction.” The company's Facebook page hasn’t been updated since last September.

Joe Dane, an Orange County, Calif. attorney who backed the campaign with $135, tells The Ticker investors' discontent rose to near fever pitch on the project’s public forum.

Dane’s main issue, however, isn’t with the project delays (reportedly caused by a problem with one of the hardware’s components); he says he understands the challenges and unanticipated snags that come with new technology launches. He also believes CEO Joe Thiel is “incredibly passionate about this project.”

But Dane – and many other backers – take issue with several months of little to no communication from the company. And when the company did respond on the Kickstarter campaign page, it was seemingly under duress and in a tone many characterized as rude.

A month ago Thiel posted this comment on Hybra’s Facebook page in response to negative feedback: “Hybra didn't go anywhere. We are just disgusted with all the terrible comments. We are going to spend our time focused on productive efforts not standing on a soapbox spouting nonsense. Of [sic] anyone has productive conversation we will be happy to respond.”

While an interview with Thiel published last week by Detroit-based Xconomy quieted some backers’ doubts that the technology (or the company itself) even existed, the once enthusiastic mass of supporters continue to be rattled by Thiel’s tone.

In that piece Thiel described the disgruntled backers as “a handful of guys living in their mother’s basements with their cats.”

“I am absolutely floored that anyone would say those things about their backers,” says Dane. “I wish he would recognize the harm he’s doing. He needs to reach out to somebody to be a filter for him and try to fix this.”

Thiel says the company does acknowledge some communication mistakes in the past and has a new public relations person in place. He also points out that the communication on the private backers page is entirely different than the tone on the public page, which he says is largely driven by a handful of people.

"We monitor and respond to all of our supporters regularly [on the private backers page] and ensure our positive supporters are kept very well informed," says Thiel. He adds that if people view the new comments on the public page they will notice "our tone has changed."
 

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