All-in-one payment card startup Plastc calls it quits, pre-orders go unfulfilledBy Shawn Knight 9 comments
Plastc in 2014 dazzled technologists with the promise of a versatile piece of plastic to handle all of your payment card duties. The company, which managed to raise at least $9 million in revenue from around 80,000 pre-orders, is unfortunately no more.
Plastc revealed on Thursday that it has exhausted all options to raise the money it needs to continue. As such, it is ceasing all operations effective immediately and is exploring options to file chapter 7 bankruptcy. All employees have been let go including customer care and social media specialists.
The startup explains that it was expecting to close on a $3.5 million Series A round of funding on February 28 of this year that would have been used to mass produce Plastc cards for pre-order customers.
The principal investment group postponed their investment and within a couple of weeks, we're told, the round fell apart. Another investor came to the table with $6.75 million yet again, at the very last minute, the investor backed out (just yesterday, apparently).
Again, without additional capital, Plastc says it cannot move forward with production meaning they will not be able to fulfill any pre-orders. In other words, those 80,000 or so people that backed the startup have lost their money. Ouch.
With so many other tech-inspired payment options already available, however, Plastc would likely have had a tough time surviving in today's environment.