I think this is the issue of a Kickstarter “generation”.
We (I) get so excited about these projects, cool gadgets and tools, and we hop on every opportunity to own them. However, with the markets getting smaller, there might simply not be enough market for the company to continue growing and making awesome products. So what happens, the company estimates that the market share is 1 million customers, but in reality, only 10000 are actually excited about it. Boom, close the doors.