French smart electric bike startup Angell has announced that it is declaring insolvency and approaching a court to ask for judicial liquidation, citing a hardware problem with its first-generation bikes as the primary reason. In an email to customers, the company's co-founder and CEO Marc Simoncini, also a judge on the French version of "Shark Tank," confirmed the news, stating that "it's over for Angell."

Angell, founded in 2019, aimed to create an electric bike with advanced smart and connected features. Its original bike boasted a small color touch screen, Bluetooth connectivity, and an integrated lock and alarm system, as well as a built-in GPS chip and cellular modem. The bike competed with other European smart bike manufacturers, such as Cowboy and Vanmoof, which itself filed for bankruptcy in the Netherlands in 2023 and is now being relaunched by a new owner.

However, Angell's all-in-one package suffered from reliability issues, with the company attributing its latest problem to a manufacturing defect in the bike's frame. According to Angell, the fragility of the bike's frame poses a risk of breakage, which is connected to the manufacturing process of the frames and specifically to the welding of the tubes together. The company does not manufacture its own bikes, instead partnering with French industrial company SEB and design company KickMaker to outsource production.

In its email to customers, Angell attempted to shift the blame to its partners for the design flaws. Nevertheless, as the company that sold the faulty bikes, Angell is financially responsible for the issues. The startup is faced with the option of recalling up to 7,000 bikes or reimbursing its customers, but has opted for an insolvency process instead. This decision will likely lead to further cases to determine who is responsible for the manufacturing issues between Angell, SEB, and KickMaker.

The consequences of Angell's insolvency are far-reaching for its customers. Owners of the first-generation bikes are now left with a bike that is not safe to ride. Furthermore, customers with recent Angell bikes will also be affected, as the company may turn off its servers at some point, potentially impacting the electric assistance and smart lock features.

The demise of Angell serves as a cautionary tale for startups in the smart electric bike industry, highlighting the importance of rigorous quality control and manufacturing processes. As the market continues to evolve, it remains to be seen how other players will respond to the challenges posed by Angell's failure.

In the broader context, Angell's insolvency underscores the risks and uncertainties inherent in the startup ecosystem. Despite its innovative product and promising start, the company was ultimately unable to overcome its manufacturing issues, leading to its downfall. As the tech industry continues to grapple with the challenges of scaling and sustainability, the story of Angell serves as a reminder of the importance of robust business planning and execution.