The Factorli team, in a picture from May, 2014. Jen McCabe is far left.

Just 3 months after raising $10 million dollars from Zappos CEO Tony Hsieh’s VegasTechFund, Factorli, a small-run factory project, has been abruptly closed, and CEO Jen McCabe fired.

The announcement was posted on the Factorli site yesterday:

As of last week, Jen McCabe is no longer CEO of Factorli. As a part of this change she will no longer manage hardware investments for VegasTechFund. Jen’s vision for removing complexity from the hardware development industry was ambitious and we look forward to seeing her achieve great things in the future.

This is a challenging time for the Factorli team, but after an analysis of the company’s progress and future capital needs, it has been determined that it would be best to reallocate those resources to other Downtown investments. In consideration of the best interest of the team, the shareholders, and all parties involved, the difficult decision was made to cease operations and development of Factorli as of August 11, 2014.

The closing will be a disappointment to many hardware entrepreneurs who were hoping that the ambitious factory would provide an economical way to manufacture products in numbers that are not big enough to justify working with Chinese manufacturers.

The Las Vegas factory planned to open in January, 2015.

The team did not respond to a request from Make: for a comment.

Vendors and potential customers who have business-related questions were advised to email [email protected] for help.

DC Denison

DC Denison

DC Denison is the co-editor of The Maker Pro Newsletter, which covers the intersection of makers and business. That means hardware startups, new products, and market trends.

DC manages customer stories at Acquia, the digital experience company.

  • Aaron Rowe

    This is very disappointing. We had planned on giving Factorli some business as soon as they were up and running.

  • WeeWax

    Didn’t someone do a spreadsheet and justify the business plan economically?

    • fiveseven15

      That’s ‘thinking negatively’ to them

  • Chris Adams

    I don’t understand this at all. First off why did they need that kind of money? We do short run work all the time and have never had to come up with anything near that level of capitalization. Frankly it kinda sounds like a bunch of dotcoms tried to become farmers (or in this case a machine/injection molding/assembly shop) and found out there are some tricks to the trade. Wonder if they already bought equipment – maybe they’d like to get rid of it….

  • joeschmoe

    Looked her up. No real tech experience or fabrication experience. Manufacturing and fab require know how, even in managerial positions . All fluff on her end. Good for Hsieh he got out of that one early. Smart guy!

  • fiveseven15

    Typical DTP. Use you and then push you out when you no longer serve a purpose…..

    • Mike

      It looks like they had a purpose that they didnt fulfill.