Plastc files for bankruptcy; ceases operations
Written by Chris Lemmon
FinTech firm Plastc has today announced that it has ceased operations and will be filing for bankruptcy, despite having collected $9 million in pre-orders from prospective customers.
The firm was working on a smart card solution which could combine several cards into one product, with an accompanying mobile app.
Plastc said that they were expecting to close Series A funding on two occasions in the past few months, but deals worth $3.5 million and $6.75 million both collapsed at the last minute. Speaking of the second deal, the company noted: “The round was a signature away from closing and we were extremely caught off guard when they notified us yesterday they were backing out”.
A statement on the firm’s website said: “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.
“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.”