Plastc burns backers for $9m as smart credit card is declined

Andrew Cummings
April 22, 2017

The company raised more than $9 million through preorders, and today, after shipping to no backers, the company said it's planning to file for bankruptcy and will shut down.

Plastc goes the same way as Coin, another hotly-tipped startup that promised one card to rule them all, and similarly shut down previous year.

Plastc promised a gadget that looked and acted like a regular credit card - users could swipe it at an ATM or a store's credit card reader - but it could hold up to 20 credit, debit, loyalty and gift cards in one place.

The company claims that it was expecting to close a $US3.5 million ($4.6 million) Series A funding round in late February and that it had functioning cards to show its investors.

The same account is asking backers to help file a class-action lawsuit against Plastc to "sue the sh*t out of these d*cks".

Instead of informing its backers and helping them recuperate their losses, Plastc let go of all of its employees and shut down its social media channels (though they do still have a YouTube page). CEO Ryan Marquis also deleted his personal Twitter account. What's not clear is how more than $9 million wasn't sufficient to get backers their orders. At first, the principal investment group postponed their investment and a couple of weeks later the round fell apart. The company then snagged a $6.75 million offer, only for the investor to back out at the last minute, according to a company spokesman. Plastc says this capital was to be allocated to the mass production and shipping of its cards. The round was a signature away from closing and we were extremely caught off guard when they notified us yesterday they were backing out.

For backers, the news gets worse.

"It's been a long road with a lot of obstacles", they wrote. It's really no surprise that a company dependent on credit cards couldn't find a reason to make people care about its product. The message on the company's site stated simply that "we will not be able to fulfill any pre-orders" but gave no indication that it will be offering any refunds for its non-existent $155 smart card.

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