Actually, it's really powered from the fully charged lithium ion battery when the customer gets it. The TEG just keeps it "topped up" if it's able to generate enough excess.
The exact same watch could have just used a 2032 coin cell (or bigger) and have gotten several years of use, even with Bluetooth LE enabled 24/7.
If you ripped the TEG out of it it would still last for a year or more.
I think based on Koen's post above, as well as this quote by matrixindustries
Also we chose to come out of stealth with a commercial product, but in the big picture, we see this tech going into smart sensors for factories and industry, smart logistics, perhaps medical devices like hearing aids. Longer term, this technology, we hope, will help increase fuel efficiency for power plants or automobiles, which we hope would be good for the environment.
That it's easy to make some guesses about what is going on. They got funding 2.5 years back but it doesn't appear that they have brought in revenues yet. I am sure there is quite a lot of pressure to make the transition from egghead ideas on paper to practical technologies that are commercially successful.
Smart watches are hot right now, and they use so little power that putting a TEG on one with a battery will obscure the miniscule contribution the TEG produces - so the consumer will never know their wrist watch *isn't* running off their body heat. And I seriously doubt they will show in the app how much daily power was used from the battery and was regenerated by the TEG. I watched their video and re-read their campaign page and nowhere do they indicate that the watch will require substantial temperature differentials to work. It's advertised as a green-type product that captures the waste energy of your body and runs forever on that. That's not true.
Personally, I consider that a lie by omission and I think that's a really shitty way to treat your customers and a scummy way to advertise a product. Some people seem to think it's OK to mislead consumers by giving an impression that is very different than reality while taking their money, but a lie of omission is still a lie.
Anyway, I don't think these people have any interest whatsoever in being in the watch business. I am guessing it's just something to show to investors to indicate validity of the concept... "we sold $300k in 10 days" or whatever. I think they do intend to make the watch and deliver, but they have to be really careful about it blowing up in their face... considering they've gotten millions in investment money, if they botch this or if customers get it and are unsatisfied, it could make it virtually impossible to get any future investment. I think what they really want to do is get more funding to pursue their other goals as stated in their quote above... but I am sure there is an imperative to produce something, and for the reasons listed, a watch where the average consumer will never know that it doesn't actually deliver on the claims made was probably seen as a good choice.
And that's also the reason they don't want to give any numbers. If you had something that worked, you'd be singing it from the highest rooftops.
This will be an interesting project to keep an eye on. I can see it going sideways, especially once people get these things and realize that it's essentially just a battery powered watch and the TEG isn't powering it at all.