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Home » From Roombas to e-bikes, why are hardware startups going bankrupt? 
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From Roombas to e-bikes, why are hardware startups going bankrupt? 

IQ TIMES MEDIABy IQ TIMES MEDIADecember 19, 2025No Comments1 Min Read
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The hardware world had a brutal week, with iRobot, Luminar, and Rad Power Bikes all filing for bankruptcy. 

Each company faces its own mix of tariff pressures, supply chain issues, and shifting markets, but together they tell a larger story about the challenges of building physical products in an era of global trade tensions and cheap overseas competition. From the Roomba maker that almost got acquired by Amazon to the e-bike company that couldn’t escape its Chinese supply chain, this week’s bankruptcies are a warning sign for hardware startups everywhere. 

Today on TechCrunch’s Equity podcast, hosts Anthony Ha, Rebecca Bellan, and Sean O’Kane discuss what went wrong for three once-promising hardware companies, plus Amazon’s massive OpenAI bet and Trump’s new approach to AI regulation. 

Subscribe to Equity on YouTube, Apple Podcasts, Overcast, Spotify and all the casts. You also can follow Equity on X and Threads, at @EquityPod. 



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