Hasta La Gadget!

One of the early pioneers in the Quantified Self movement has quietly gone out of business. Zeo, a leading maker of hardware and software used by consumers to track sleep and improve their health, has not been operating since the end of last year. A trustee has nearly completed the sale of all company assets. Zeo has been very quiet about the news up until now. In fact, Zeo’s website is still up and doesn’t mention the news.

Zeo was founded by three students at Brown University who had a passion for using the science of sleep and technology to improve people’s lives. The company introduced its first product, the Zeo Personal Sleep Coach, in June 2009.

The following week, the first article mentioning the term “Quantified Self” was published in Wired magazine. While the article didn’t mention Zeo, it did claim “a new culture of personal data was taking shape.” And that every facet of life from sleep to mood to pain was becoming trackable. “Even sleep – a challenge to self-track, obviously, since you’re unconscious – is yielding to the skill of the widget maker.”

In 2011, the widget maker Zeo introduced a mobile version to its Sleep Manager product line. By wearing a special headband, with sensors to measure electrical current, the Zeo could track different phases of sleep, such as Light, Deep and REM sleep, in addition to awake time. This data was then sent to an iPhone, iPod, or Android phone, and could be automatically uploaded to a personal and private online sleep database. This data along with some analytical tools could then be used to help improve your sleep and health.

What Went Wrong

Former CEO, Dave Dickinson, who lead the company for the past 5 years, tells TechCrunch the problem was not the brand or the product. In fact, the company was growing before it shut down.

Dickinson says the problem was the business model. “The business model is more important than the brand. Consumer health devices are a very capital-intensive business. You have to find enough money to address the consumer, funds to address the physicians, and also the retailers, and that’s up and above the device business having to fund inventory.”

Zeo had two business model options on the revenue side. Become a SAAS-like business with subscriptions and recurring revenue or make enough money from a customer who bought just one unit. But that was very difficult when the company started pricing its mobile product at $99, with ‘sub-optimal’ profit margins.

The Newton, Massachusetts-based company had raised more than $30 million over eight years. Dickinson says raising capital was not the problem.

Sleep Tracking As A Commodity

Another problem for Zeo was that sleep tracking became a commodity. Devices like the FitBit, lark, and Jawbone Up use an accelerometer to determine sleep and awake cycles, using wrist actigraphy. These products brand their products as sleep trackers just like Zeo.

Dickinson says Zeo had peer-reviewed scientific studies, including one published in the Journal of Sleep Research, showing his technology was 7/8th as accurate as data from the a sleep lab, considered to be the gold standard for measuring sleep. The study also says data from wrist actigraphy to measure tiny motions in devices are much less accurate. But that didn’t seem to matter for enough consumers.

The Competition

Dickinson says he admires what the Fitbit and others like it have done. Those devices are not limited to one health issue like sleep, which was another problem for Zeo. Those other products work for different health and wellness areas, such as the well established desire to lose weight and become physically fit. Consumers already spend billions of dollars to achieve those goals. And they are already educated and motivated to improve their weight and fitness.

Part of Zeo’s business model required it to educate the consumer on the importance of sleep and how sleep awareness and data can improve your health. Arianna Huffington, Editor-in-Chief of the Huffington Post, our AOL sister site, has been a crusader on the importance of sleep to your health. But according to Dickinson, “sleep is still lagging behind as important to your wellness. So in that respect, Zeo was early in terms of its mission.”

The Product

I used the device for several months last year and thought it was amazing. While wearing the headband took some getting used to, for me and my wife, the data it revealed was eye-popping. In addition to learning that I wasn’t getting enough sleep, which I knew already, I learned about the different types of sleep I was getting.

Most nights, I would get a half hour to an hour of “Deep Sleep” (dark green in the chart below) after going to bed. This is the phase of sleep the helps you feel restored and refreshed.

I would also see several periods of REM sleep, important for overall mental health, mood, and the ability to retain knowledge. The bulk of my time asleep, like most people, was spent in “Light Sleep,” which is better than not sleeping but doesn’t do as much for my health as Deep or REM sleep.

I was able to see graphics like this on my iPhone in the morning.

Here’s a good night with a sleep score of 90 out of 100 and more than 8 hours of sleep.

And here’s a bad night, with a score of 47 with just 4 and a half hours of total sleep.

If I woke up in the morning during REM sleep, it was hard to get out of bed. If I didn’t get enough Deep Sleep, I didn’t feel I had a good night sleep.

Zeo claimed the real value of the program was I could get personalized online sleep coaching. But this required logging in to the website and entering more information about my sleep and other variables I wanted to track. If I could have entered the data right on my iPhone, I would have likely used it more. Since it required logging in on the website, it proved too much friction for me.

I also stopped wearing the headband after a while because it does feel a bit awkward. The former CEO says the company was aware the device was too invasive for some customers.

But if a less invasive sensor was made and it was easier to enter custom data and get actionable information, I would have used it every night.

What’s Next

Dickinson can’t comment on exactly what’s next for Zeo, after all the assets are sold. But he is hopeful that there may be an opportunity for the company to re-emerge in the future.

An article appeared in the MobiHealthNews in March, that reported the Better Business Bureau had listed Zeo as being “out of business” but with no official announcement by the company, the news hasn’t been widely known.

It is still possible to log-in to Zeo’s “My Sleep” site that contains your sleep data. An article on the Quantified Self website today tells users how they can download their data in case the site goes offline.

As word about Zeo’s status has spread, Dickinson says they have received tremendous support and inquires from all over the world from disappointed customers and sleep researchers who had planned to use the units for the research.

He wrote a post on the MobiHealthNews site last week that included some additional lessons learned. He concluded by writing “motivating behavioral change through data visualization can be very powerful, but it is more of an art than a science. We will need far more artists, user interface experts and psychologists to help make our data work harder to motivate better health.”

Leap Motion was showing off its still unreleased gesture motion controller for computers at Google I/O 2013. The demo unit allowed you to use the controller to navigate Google Earth, and the functionality felt ready for prime time to me, as this was the first time I’d ever used the Leap Motion. The controls seemed intuitive, and within a few minutes I was flying around the globe pretty handily, though I did have some trouble finding San Francisco.

I asked about Leap Motion’s recent announcement that it would delay launch in order to further beta test Leap, and as you can see in the video the company is keen to note that the hardware is solid, but there’s a need for more testing around the consumer experience. Leap seems very confident they can deliver by their new anticipated ship date of late July, however.

The tech is impressive regardless of whether it hits a little later than anticipated, but it’ll be interesting to see if the extended beta has an effect on how it’s eventually received by consumers.

Today, gaming console and software company OUYA announced that they have closed a $15 million round led by Kleiner Perkins, and with participation from the Mayfield Fund, NVIDIA, Shasta Ventures and Occam Partners. This marks one of the largest institutional investments to go to a project that had its humble beginnings on Kickstarter.

OUYA is a company that launched back in 2012 on Kickstarter under the guiding hands of Julie Uhrman, a video game industry veteran who believes that gaming should be affordable and enjoyable for everyone. She and the team developed a $99 Android gaming console, which hooks into the TV and comes with automatic access to free-to-try games. It launched on the crowdfunding site to much fanfare, scoring $8.6 million in funding, which ends up being around 9x more than OUYA asked.

Along with the $15 million round, which brings OUYA’s total amount of funding to $23.5 million, the company will also be bringing KPCB General Partner Bing Gordon on to the board of directors. Gordon brings with him years of experience from Electronic Arts.

Here’s what he had to say about the funding:

OUYA’s open source platform creates a new world of opportunity for established and emerging independent game creators and gamers alike. There are some types of games that can only be experienced on a TV, and OUYA is squarely focused on bringing back the living room gaming experience. OUYA will allow game developers to unleash their most creative ideas and satisfy gamers craving a new kind of experience.

The OUYA hardware has proven its spot in the market with the successful Kickstarter project, followed by an institutional investment led by a firm such as KPCB. “The message is clear: people want OUYA,” said Uhrman.

But the same story rings true for software, as the company has seen over 12,000 developers sign up for the platform to build games and monetize them in any way they’d like. This is up from 8,000 developer signups in March.

And if that weren’t enough, OUYA has been picked up by major retailers like GameStop, Best Buy and Amazon, with availability originally intended to begin June 4. OUYA is pushing that back to June 25, however, announcing the delay today as a result of a desire to be able to meet initial demand.

Clearly, the affordable gaming console speaks to people. But is it enough to make OUYA profitable? In an interview with TechCrunch, Uhrman explained that OUYA essentially breaks even on the hardware from the $99 gaming console, and that all games will be free-to-try. Curious if that was sustainable, we asked Uhrman if free-to-try would always be the case with OUYA games.

“Free to try is a core tenet of OUYA,” said Uhrman. “We wanted a gaming experience for the television that’s inexpensive to get into. Developers monetize however they’d like to, which is why we have games with unlockable demos inside a fully paid version, or micro-transactions, and even a donation based game. I’m looking forward to the first episodic, subscription-based game,” she said.

According to Uhrman, the latest round from KPCB and friends will go toward further supporting game developers and development, bringing in exclusive and unique OUYA content, and meeting the demand seen from all parts of the world, including Japan, Brazil, Germany, Spain, and Italy.

Kickstarter-funded Bitponics was showing off its finished product at TechCrunch Disrupt NY’s Hardware Alley today in New York, which is shipping out to backers in the next few weeks according to company cofounder Michael Zick Doherty. The Bitponics system is a cloud-based hydroponic garden manager, complete with a web-based dashboard that’s accessible anywhere and can control every aspect crucial to the process, like the pH of the soil, temperature, light and moisture level.

The Kickstarter project from the Brooklyn-based company managed to pass its $20,000 goal back in June of last year, as people seemed drawn to the idea of a platform that takes a lot of the guesswork out of setting up and managing a hydroponic garden. It’s designed to be dead-simple, with guides for how much sun, water and nutrition your plants need. It collects data via sensors that plug into a base, which connects to your local Wi-Fi network, and then logs data in a dashboard and can send you notices when things aren’t going exactly as they should. The base has two power outlets built in which feature timers that allow you to set schedules for components like lights and pumps.

“I was working for a company called Windows Farms doing the hydroponic systems, who do the growing and the plumbing and all those aspects of it,” Doherty said of how Bitponics came up with the idea. “My issue with hydroponics is that there are a lot of things that you have to know well to be able to grow well, and there’s a lot of time put into monitoring the conditions of the plans.”

As a hardware and software platform startup, I asked what the biggest challenges Bitponics has faced in terms of actually delivering a product. Doherty said that there were challenges with manufacturing and getting that right, but that the biggest challenge was making sure the entire process was engineered correctly in terms of user experience, so that literally anyone could pick it up and use it, and grow things well.

“Probably the biggest challenge was figuring out a user flow that was something that anyone could do,” he said. “Building something that someone who had never tried hydroponics, or someone who had never touched a computer would be able to just follow these instructions and get running in a reasonable amount of time, that was a huge challenge.”

Bitponics is going to start shipping to the general public once it gets all of its backer systems out to Kickstarter supporters, when it’ll be available for $499 for the base station, with service available on a recurring subscription basis. If you’re looking for a way to manage your in-home herb or cannabis farm even when you’re away on business, this could be one to check out.

Munich-based startup and TechCrunch Disrupt NY Battlefield contestant KISI Systems is launching its Indiegogo campaign today. KISI and KISIBox together comprise a keyless entry solution that lets users provide timed, revokable access to their own apartments on an as-needed basis. It’s the perfect complement to collaborative consumption services like Airbnb and TaskRabbit and in general a very useful addition to any household.

KISI takes its cues from enterprise-grade tools that allow businesses to control who can and can’t gain access to a facility – co-founder Bernhard Mehl explained that he and his co-founders decided it was an idea that would make perfect sense when applied to a consumer setting, too.

The KISI system is a combination of hardware and software, with a set price of $479 up front when it hits retail. Initially, backers can get it for $249 for the first Indiegogo supporters, and the best part is that the service is included with the hardware purchase, so this isn’t something that you end up necessarily paying for on a continual basis. There is a SaaS model planned as well, for people who’d like access to premium features, but Mehl says that in general, they aren’t interested in making homeowners feel like they’re renting the locks on their doors.

“We stripped an enterprise product down to a consumer-friendly version, and provide very easy-to-use key-management tools, so we have a web app and you can manage or see who accessed your apartment, or who currently has access on their smartphones,” Mehl says. “It’s a more decentralized or democratized access, so that it’s not the house owner who controls all the keys, but the resident themselves.”

KISI is designed for apartment tenants primarily, and can be made to integrated with your intercom system to provide complete building access from a web-based dashboard. Mehl says that where in the past this has been accomplished through sharing of hardware keys, that’s a dramatically outdated prospect, since it involves granting a type of access you can’t easily revoke, at least not without changing your locks. The platform is why KISI isn’t just another Lockitron, providing things like integration with an intercom system, and a record of when keyholders have accessed your apartment, and for how long.

The big opportunity for KISI is to take advantage of the rise of services like Airbnb, Exec and TaskRabbit, and collaborate with those companies to help provide temporary access to service pros who might only need it for a few minutes, a week or an afternoon.

“All the hardware parts are installed in your apartment, and you can open even the front door of the house with your smartphone, and yet nothing changes for anyone else who has physical key access” he said. “Up to now, you had to change the whole system to get automated access, but the cool thing is that we’ve managed to accomplish that without requiring a complete overhaul.”

KISI has already impressed enough to win an entrepreneurial startup grant from the German government, and they’ve won various prizes, including from the NYCEDC, which provided them with $25,000 for the “Next Idea” award.

KISI will launch in New York City and Munich first, and will then expand to other markets after that. It doesn’t replace existing standards like Z-Wave, but works with them, and can also be used in combination with existing devices like Lockitron, so there’s opportunity for it to grow into existing home automation systems.