Misfit

Misfit emerged in the burgeoning wearable technology market, establishing itself through a focus on aesthetically pleasing design and user-friendly functionality. Founded on October 14, 2011, by Sonny Vu, Sridhar Iyengar, and former Apple CEO John Sculley, the company’s name was chosen in tribute to Steve Jobs, who passed away shortly before its incorporation. This ethos was inspired by Apple's famous "Think Different" campaign that celebrated "the misfits."

The founding team brought a unique blend of experience. Sonny Vu and Sridhar Iyengar had previously co-founded AgaMatrix, a company that successfully developed and marketed medical devices for diabetes management, including the first FDA-approved smartphone medical device. This background in regulated medical technology informed their approach to the consumer wellness space, aiming to create devices with a seamless user experience, unburdened by strict regulatory hurdles, before potentially circling back to medical applications. John Sculley's involvement lent significant consumer electronics and marketing credibility from his time at Apple and Pepsi. Vu, a Vietnamese immigrant and MIT-trained researcher in computational linguistics, served as the operational lead, driving the company's product vision.

The company's first product, the Misfit Shine, was launched through a highly successful Indiegogo campaign in 2012, which validated market demand by raising over $846,000 against a $100,000 goal. The Shine set the template for Misfit's product line: a discreet, all-metal, waterproof activity tracker that could be worn in various ways. Unlike competitors that required frequent charging, the Shine used a replaceable coin cell battery that lasted for months. It tracked steps, calories, distance, and sleep, syncing the data to a mobile app. Subsequent products like the Flash, Ray, and the hybrid smartwatch Phase continued this focus on fashion-forward design combined with core activity tracking. Misfit's business model centered on the direct-to-consumer sale of these hardware devices. They also pursued strategic partnerships, co-branding products with companies like Swarovski and Speedo to broaden their market appeal and distribution.

Recognizing Misfit's scalable technology platform and engineering talent, Fossil Group acquired the company in November 2015 for $260 million. The acquisition was a strategic move for Fossil, aiming to integrate Misfit's technology across its extensive portfolio of watch brands to compete in the growing connected device market. Following the acquisition, Sonny Vu became President and CTO of Connected Devices for Fossil Group. While the Misfit brand itself was later discontinued, its technology became foundational for the hybrid smartwatch lines across Fossil's various licensed brands, marking a significant integration of style and technology.

Keywords: activity trackers, wearable technology, consumer electronics, product design, sleep tracking, fashion accessories, smart home, Fossil Group, Indiegogo, digital health