Crowdfunding Headphone Company Ossic Shuts Down After Raising $3.2M

In the era of millennials, start-ups in every corner of the world can get their funding through fundraising platforms and build up their business overnight thanks to the solidarity of like-minded people. Even DJs have used websites such as Kickstarter to get enough money to introduce themselves in the industry. Sometimes the project is a success and all contributors receive their share, whether it’s an item, a goodie or a product named after them. When the project doesn’t work out, backers should get their money back. Seems like this is not exactly what happened with Ossic, an innovative headphone company that shut down after raising more than $3.2M, and no refund has been issued whatsoever. The result? Angry, disappointed people who could not see the idea go through, and a potential lawsuit if the company doesn’t return the money as expected.

 

It all started back in 2016 when Ossic launched a campaign to raise funds for their new high-end headphones, Ossic X, which were marketed as a revolutionary concept perfect for Virtual Reality and 3D audio. With more than 22,000 pre-orders, the company was expected to enter mass production in spring 2018. When the time came they released a statement on their website informing that they were unable to keep their project alive, stating financial reasons as the main reason for deciding to shut the business down:

“To fail at the 5 yard-line is a tragedy. We are extremely sorry that we cannot deliver your product and want you to know that the team has done everything possible including investing our own savings and working without salary to exhaust all possibilities.”

In spite of the letter of apology, backers who supported the idea are extremely upset about the outcome, to the point that they are considering filing a class-action lawsuit against the company. So, next time you decide to contribute to an innovative idea, be aware that there’s always a risk.