// startup autopsy

MusicGremlin

Wi-Fi music before the world had Wi-Fi habits

timingAcqui-hire

Fatal mistake: Bet on a standalone Wi-Fi music device hardware moat just as Apple was about to redefine the entire category with the iPhone.

Founded	1988
Closed	2007
Country	USA
Sector	Hardware

50%

Key Events Timeline

1988-01-01

FOUNDING

MusicGremlin founded with a vision for wireless portable music technology.

2005-06-01

FUNDING

Raised $11.6M to develop and launch the Wi-Fi enabled MG|fi music player.

2006-06-01

PRODUCT LAUNCH

Launched the MG|fi, a Wi-Fi portable music player capable of wireless music downloads.

2007-06-29

PIVOT

Apple iPhone launched, instantly commoditizing Wi-Fi music access and undermining MusicGremlin's core value proposition.

2007-12-01

SHUTDOWN

MusicGremlin acquired and shut down as standalone product, unable to compete with Apple's ecosystem.

Full Analysis

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Documented cause

MusicGremlin developed a Wi-Fi enabled portable music device that was fundamentally ahead of its time and misaligned with the rapidly evolving mobile landscape. The company's core product—a standalone wireless ...

music player—faced an existential market shift with Apple's introduction of the iPhone and iPod Touch in 2007. These devices consolidated music playback with broader smartphone functionality, immediat

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€29M

Peak valuation

HypeCycle · MoatType · ResearchTags

MusicGremlin raised €11.6M before bet on a standalone wi-fi music device hardware moat just as apple was about to redefine the entire category with the iphone. ended it. See the documented cause, verified lesson and all failure signals.

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Key Events Timeline

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