Headphone startup Ossic goes belly up and backers lose out
The startup company Ossic developed 3D sound headphones and was half funded by crowdfunded donations. The other half was funded by other investments and the company has been working on developing the headphones for years. Apparently, all of that money was swallowed up during the R&D and initial test-production phases. In the end, the company was only able to produce around 250 units and only a handful of those units made it to backers. To be clear, the company raised over $5 million USD through donations and pre-orders, along with an undisclosed amount that came from a seed investment. Still, only a handful of initial backers received units, with no word on what happened to the rest. As far as the other pre-orders are concerned? Well, Ossic claims they would need an additional $2 million in order to produce those units. The company received over 22 thousand orders and it would seem less than 100 units were shipped. Those who donated and pre-ordered will not get their money back and the company is shutting down immediately. Ossic announced this via press release on its website.
Why did it fail and what about the money?
source: Ossic