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Sounds to me like another nail in the coffin for Arduino as a useful tool for hobbyists.

That said I stopped buying Arduinos years ago and started buying super low cost ESPs from China and I think most other people did too so I guess it's not going to be a huge blow


Yup. I switched to ESPs for projects and won't go back to Arduino. I had to fix someone else's Arduino based art installation a couple weeks ago and it seemed weird and very retro going back to work with that Arduino form factor.

That said, maybe they have a future being a standard component in industrial settings. I would tend to trust an Arduino more than an ESP in critical infrastructure.

> I would tend to trust an Arduino more than an ESP in critical infrastructure.

Arduino has always come across to me as being for hobbyist/beginner/learning, and critical infra would use things more like, for example, STMicro or Texas Instruments microcontrollers

Wasn't the whole project started because a professor was unhappy with the state of hardware for the schoolroom?
Yeahhhhh. Taking on VC debt is a great way to kill your company. Guess this will buy them a few more years before they start turning the screws.
They didn't take debt— they sold equity in the company.

In reality this makes the company MORE financially healthy, while diminishing the payout the founders would get if the company pays dividends or is sold

I mean, it's not free money. The people who gave them the money expect to get the money back plus some profit. Whatever fancy financial words people like to doll that up with, it still sounds to me like debt.
It's literally not debt. Debt is when you borrow money or issue bonds with obligation to repay the principal, plus interest

This is an equity investment: the VCs buy an ownership stake in the company, which they share with the founders. They don't receive "profit"- they get a payout proportion to their ownership stake if the company is sold or retained earnings if the company issues dividends (not common)

Source: I'm a founder and former VC.

I understand, but it doesn't seem like an interesting distinction to me. It's all just different financial ways to say the same thing: they got money from someone and will be expected to pay it back with even more on top somehow later.
> sold equity in the company.

> diminishing the payout the founders would get if the company pays dividends or is sold

That’s VC debt

It isn’t. Venture debt is a whole different thing.

Disclosure: is founder who has raised money through both equity financing and debt financing.

Yeah, debt is better for the founder which is why investors want priced rounds.
> super low cost ESPs from China

Just checked aliexpress.com. You were not kidding - $1-2 per item!

They have been cheap for many years. There are so many great cheap options out there now with good support, ESP, ESP32, Raspberry Pi Pico, Pico W, WeAct Black Pill (STM32), various nRF2 boards.

At this point Arduino is just extremely overpriced and probably only still relevant because it's a household name and people want pin compatibility with the Uno and V5 tolerance for reasons.

Cheap boards aren't new, but cheap boards that have a sane development environment and decent documentation are far more novel.
Many of the Arduino libraries have been modified to work with most of the cheap boards (already listed by another user).

If the Arduino IDE becomes a pain point I'm sure an open IDE (or VS Code plugin?) will step in. (There may already be such a thing?)

Edit: another comment suggests PlatformIO + VS Code allows you to avoid the Arduino IDE.

> another comment suggests PlatformIO + VS Code allows you to avoid the Arduino IDE.

s/allows you to avoid/is highly preferable to/ :-)

How does the compatibility go? I guess it's trivial to setup a dev enclv using ooen source ide and toolchain so we don't have to use their ide.
Supported fully by the Arduino framework. Working with them using PlatformIO in vscode is really nice and streamlined.
Thanks, that's good to know!
I guess the first nail was hobbyists buying their boards from China.
How is that a nail in the coffin?
How do you have a 100M business selling cheap, niche microcontrollers to hobbyists? They're starting to pursue a subscription model (Arduino Cloud), I'd expect them to shutter products that won't work with the subscription model and require everything else to use it. It's your standard enshitification play.
By having 10M+ hobbyists that you support and inspire. That's how... easier said than done, but if they play their cards right, it is possible.
"Supporting" and "inspiring" hobbyists isn't going to pay the bills, though.

Arduino opened up an ecosystem when they started back in 2005, but the world looks a lot different in 2023. First-party Arduinos are nothing special these days, and their competitors make way better products for far less money. Even the Arduino IDE has been leapfrogged by MicroPython / CircuitPython.

Hobbyists these days just aren't all that interested in Arduino anymore, and there is pretty much nothing paid which they can introduce which will change that.

> but if they play their cards right, it is possible.

Not with $54M in debt to service. This is a death warrant. I'm sure the execs will make out nicely, though.

There isn't any debt to service. Taking funding isn't the same as taking debt (in some ways its worse, in some better), and there's no direct interest or payment they have to make every month like if it was debt.

The problem is that they give up ownership (and probably ownership) to people who may have different goals and values. This can lead to enshittification, especially for a company that doesn't have a good path to extreme growth and profits. You also can't discharge ownership in bankruptcy like you can with debt.

VCs, historically, don't understand this. Arduino did, but they've likely ceded some control by doing this fundraising. Maybe these VCs are different. I'm not counting on it.
That won't do. Your number is way too low.

You need either at least an order of magnitude more (still iffy, people don't buy boards all the time), or to sell into some larger market. Are there 100M electronics hobbyists to sell to over the world? Maybe if you make it into schools...

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