Plastc, a smart payment card that can store all your CC details, was once a promising product. They started taking pre-orders back in 2014. The credit card of the future could digitally hold 20 credit or debit cards that a user could switch between. Maybe not enough for churners, but sufficient for everyone else. Now, almost three years and countless shipment delays later, the company is bankrupt.
That means that all backers’ money is lost, and no Plastc cards will ship. Backers usually paid $155 or $135 for two Platsc cards.
Plastc announced the news on its website yesterday along with the fact that all its employees have been laid off. Its customer care and social media channels have also been shut down.
Plastc raised $9 million from 80,000 pre-orders. It wasn’t and will not be able to fulfill any of them. The company apparently expected to raise $3.5 million in February, but the investment group ended up backing out. It found another investor willing to sink $6.75 million into the venture, but it backed out at the last minute. Plastc says it needed the money to start its cards’ production. You’d think $9 million might have been enough to ship some of the cards at least.
They say they really appreciate the support of their amazing backers, but those 80,000 people just paid for pre-orders, expecting a product. It was always a risk to start with. I didn’t jump on the Plastc ship at first, as I thought to wait and see how it develops before ordering. Then I forgot all about it, probably because of digital wallets.
Here’s the full statement from Plastc:
We Regret to Inform You…
For the past 3 years, our mission here at Plastc was to build and deliver the most technically ambitious smart card on the planet. After making enormous leaps in development, product innovation and progress towards our goal, Plastc has exhausted all of its options to raise the money it needs to continue.
Plastc, Inc. is exploring options to file Chapter 7 Bankruptcy and will cease operations on April 20, 2017.
While we have fallen short of our goal, we are proud of our team and the effort that went into developing a working Plastc Card. However, without the necessary capital to continue, all employees have been let go, which means that Customer Care and Social Media channels are unmanned or have been shut down.
How We Got Here:
We were expecting to close a $3.5 million Series A funding round on February 28, 2017. There are functioning Plastc Cards, which were demonstrated to our investors and our backers, and the capital was to be allocated for the mass production and shipping of Plastc Cards to pre-order customers. At first, the principal investment group postponed their investment and a couple of weeks later the round fell apart.
After the initial funding was unavailable, Plastc made progress with another investor who offered $6.75 million. This deal was scheduled to close last week and would propel development across the finish line, as well as allow for Plastc Card pre-orders to be shipped and for production to continue into a retail phase.
However, once again at the very last minute, our investor gave us notice that they have decided rescind their investment offer. The round was a signature away from closing and we were extremely caught off guard when they notified us yesterday they were backing out. Our existing investors kept us alive and functioning as long as they could during this fundraising process, but in the end, we needed new outside capital to get into production.
What This Means For Backers:
It’s been a long road with a lot of obstacles. The support of our amazing backers has been incredible, which makes this announcement even harder. We were so incredibly ready for production in order to hit our deadlines but without capital it is impossible for us to move forward and we will not be able to fulfill any pre-orders.
We are disappointed and emotionally distraught, and while we know this is extremely disappointing for you, we want our backers to know that we did everything we could to make Plastc Card a reality.
– Plastc Inc.