Lily Robotics launched in 2015 with one of the most viral product videos ever: a sleek, waterproof camera drone that you could simply throw into the air—and it would autonomously follow and film you. The video garnered millions of views. Consumers placed $34 million in pre-orders at $499-899 each.
Company Data
- Founded: 2013 — Antoine Balaresque, Henry Bradlow
- Pre-orders: $34 million
- Failed: January 2017
There was one problem: the drone in the viral video wasn't a Lily prototype. It was a DJI drone with a GoPro, professionally edited. The actual Lily technology couldn't perform as advertised. After multiple delays, the company announced it couldn't ship the product and was shutting down. A criminal investigation followed. Most customers never received refunds.
Key Lesson
Never sell a product that doesn't exist. Staged demo videos might generate buzz and pre-orders, but they're fraudulent if you can't deliver. In hardware, under-promise and over-deliver.